A sliding scale is a term in economics used to describe a scale where prices, taxes or wages change based on another factor such as gross sales, a cost-of-living index or income level. Under a sliding scale, you can manually calculate the prices, taxes or wages paid or received based on information about the sliding scale model and details about the sliding scale factor component.

## Step 1.

Calculate the base and various levels for the sliding scale. For example, assume a sliding scale commission pays 10 percent based on sales of \$0 to \$10,000, 20 percent commission based on sales of \$10,001 to \$20,000, 30 percent commission based on sales of \$20,001 to \$30,000 and 40 percent commission based on sales over \$30,001.

## Step 2.

Calculate the gross sales for the commission period. For example, assume a salesperson had gross sales of \$50,000 for the commission period.

## Step 3.

Calculate the commission payable at the base level. Continuing the same example, the salesperson would receive commission of 10 percent for the first \$10,000 in sales: \$10,000 x .1 = \$1,000.

## Step 4.

Calculate the commission payable at the next level on the sliding scale. Continuing the same example, the salesperson would receive commission of 20 percent for the next \$10,000 in sales: \$10,000 x .2 = \$2,000.

## Step 5.

Calculate the commission payable at the next level on the sliding scale. Continuing the same example, the salesperson would receive commission of 30 percent for the next \$10,000 in sales: \$10,000 x .3 = \$3,000.

## Step 6.

Calculate the commission payable at the next level on the sliding scale. Continuing the same example, the salesperson would receive commission of 50 percent for the last \$20,000 in sales: \$20,000 x .4 = \$8,000.

## Step 7.

Add the figures from Step 3 through Step 6. Continuing the same example, \$1,000 + \$2,000 + \$3,000 + \$8,000 = \$14,000. This figure represents the total commission paid under the sliding scale.