Affiliate Commission Calculator

What a commission rate actually costs you

Enter your average order value and a commission rate, and see what you pay per sale, what the affiliate earns, and what you keep. Switch to recurring and the same 20% costs several times more over a subscription’s life. The formula is published below so you can check it.

$49
20%
25
80%
12 months
12 payments
Commission per sale
$9.80

first payment

Commission per customer
$117.60

over 12 payments

What you keep per customer
$352.80

after commission and 80% margin

New revenue per month
$1,225.00

at 25 sales

Commissions per month
$2,940.00

at steady state

Effective commission rate
20.0%

commissions ÷ revenue, both at steady state

This month's new customersEarlier customers still being paid on
$0$875$1,750$2,625$3,500Month 1Month 6Month 12Month 18Month 24Months after launch →steady state, $2,940/mo
Each month brings 25 new customers and you keep paying on the earlier ones. The bill climbs for 12 months, then flattens at $2,940/mo, which is the number to budget for, not the first month's $245.
View as a table
Commissions paid in each of the first 24 months.
MonthNew customersEarlier customersTotal paid
1$245$0$245
4$245$735$980
7$245$1,470$1,715
10$245$2,205$2,450
13$245$2,695$2,940
16$245$2,695$2,940
19$245$2,695$2,940
22$245$2,695$2,940
24$245$2,695$2,940
Example

$49/month subscription · 20% recurring · 12-month lifetime · capped at 12 payments · 25 sales/month · 80% margin

Commission per sale, first payment
$9.80
Commission per customer, lifetime
$117.60
New affiliate revenue per month
$1,225
Commissions paid per month, month 12 onward
$2,940
What you keep per customer
$352.80
Effective commission rate
20.0%

Check our maths

The formula, with the numbers in it

No affiliate vendor publishes theirs.

One payment

Monthly price
$49.00
Rate
20%
Per payment
$9.80

Whole customer

Per payment
$9.80
Payments
12
Per customer
$117.60

Capped at 12 payments. Uncapped over 36 months it is $352.80 for the same customer.

What you keep

Revenue
$588.00
Margin
80%
Commission
$117.60
You keep
$352.80

Refunds reverse

A refunded sale claws its commission back automatically.

Step-downs change it

A rate that drops after 12 payments moves the lifetime figure. Business plan.

Processor fees come first

Stripe and Shopify fees come off before your margin, and are not modelled.

Worked examples

Three programs, priced

Same calculator, three shapes of business.

SaaS subscription

$49/mo · 20% recurring · capped at 12

$117.60

per customer

Uncapped, the same customer costs $352.80 over three years. The cap is doing the work, not the rate.

Ecommerce store

$85 order · 15% one-time · 45% margin

$12.75

per order

A 12% return rate takes it to $22.44 kept per order. Commission reverses with the refund, so it comes off both sides.

Course or community

$299 one-time · $90 flat · 90% margin

$90

per sale

Flat wins here for a non-maths reason. “$90 a sale” is a sentence an affiliate can say in a video. “30.1%” is not.

Setting the number

How to pick a rate you can keep paying

Four decisions, in the order that matters.

Start from margin

30% on a 40% margin leaves you ten points. On 85% it leaves fifty-five. Different businesses.

Shape before number

20% recurring over twelve months is twelve times 20% one-time. Pick the basis first.

Cap, don't cut

25% for twelve payments recruits better than 10% forever, and usually costs less.

Schedule the step-down

Published at signup it is the deal. Introduced later it is a problem.

Commission plans, step-downs and per-product rates are Business-plan features. The Startup plan runs a single rate.

FAQ

Before you publish a rate

The questions founders ask the week before they launch.

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  • We will not quote an industry average, because we have not measured one. What matters is whether the rate survives your margin, and whether it is one-time or recurring. The basis moves the total far more than the percentage.

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