Turns a price, a gross margin and an affiliate commission into the total commission, the profit left and the share of revenue paid out, for percentage or fixed commissions and one-time or recurring payouts. For anyone deciding what to offer affiliates without losing money on each sale.
How to use it
Enter the terms you plan to offer. The result updates as you type, and nothing leaves your browser.
- Pick your currency and enter the price a customer pays each time, and your gross margin on it.
- Choose a percentage or a fixed commission and enter its value.
- Choose a one-time or recurring payout. For recurring, enter how many monthly payments the commission covers.
- Read the total commission and the profit left, and check the finding for a commission larger than the profit.
How Reavlo tests this
The calculator uses a plain revenue and margin model, run in your browser. Every step is listed under Show the math.
- Revenue = price × payments covered. A one-time payout covers 1 payment; a recurring one covers the months you enter, or 12 if you leave it empty.
- Gross profit = revenue × gross margin.
- Commission per payment, percentage = price × commission rate.
- Commission per payment, fixed = the amount you enter.
- Total commission = commission per payment × payments covered.
- Profit after commission = gross profit − total commission.
- Commission share of revenue = total commission ÷ revenue.
A percentage commission equal to your gross margin leaves no profit, so that margin is the ceiling for a percentage commission. Amounts are in major units of the currency you pick (ISO 4217) and rounded to 2 decimals.
Findings. One rule runs on the result.
- AFC-01, commission above gross profit (critical). The affiliate is paid more than the sale earns, so every sale loses money before other costs. This follows from the arithmetic and is not a benchmark.
Limits. Gross margin should include only the cost of the product or of serving the customer. The calculator does not model refunds, churn during a recurring period, taxes, payment fees or the cost of running the program, and it does not suggest a typical commission rate.
Questions
How much commission can I pay an affiliate?
At most your gross profit on the sale, and in practice less, because you also pay for support, refunds and the program itself. The ceiling for a percentage commission equals your gross margin.
What is the difference between a one-time and a recurring commission?
A one-time commission is paid on the first sale. A recurring one is paid on each payment for a set period, so the total grows with the months it covers.
Should I use a percentage or a fixed commission?
A percentage follows the price, so a discount shrinks it too. A fixed amount is predictable but can exceed the profit on a cheaper plan. Test both here with your lowest price.
Does this account for customers who cancel?
No. A recurring commission here assumes every payment happens. If customers leave early, the real total is lower.