Commission Calculator
Calculate commission from gross or net booking values.
Use our free Commission Calculator to work out commission on a booking or sale, whether your commission is based on the gross or net value. Calculate the commission, VAT on commission and total commission invoice, or work backwards from an amount received after commission to find the original booking value.
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Commission Calculation
Based on the gross booking value and commission rate
Results Breakdown
- Calculation
- Commission based on Gross
- Amount Received After Commission
- £0.00
- Gross Booking Value
- £0.00
- VAT Rate on Booking
- 0%
- Net Booking Value
- £0.00
- Commission Rate
- 0%
- Commission Before VAT
- £0.00
- VAT on Commission
- £0.00
- Total Commission Invoice
- £0.00
Summary
- Commission Before VAT
- £0.00
- Commission Before VAT
- £0.00
- VAT on Commission
- £0.00
- Total Commission Invoice
- £0.00
- Effective Commission Rate Including VAT
- 0%
Commission may be calculated on either a gross or net booking value, depending on the terms agreed. When commission is based on a net booking value, the calculator uses the VAT rate entered for the booking to work out the net amount from the gross amount.
This calculator performs mathematical commission and VAT calculations based on the figures and rates entered. It does not determine the terms of a commission agreement, whether VAT applies to a particular commission or the correct VAT treatment of a transaction. Always check the relevant agreement and, where necessary, obtain appropriate tax advice.
How to use the Commission Calculator
Choose how commission is calculated
Commission can be calculated in different ways depending on the terms of your agreement.
Choose whether your commission is based on:
- Gross Booking Value – commission is calculated on the full booking value.
- Net Booking Value – commission is calculated after the VAT included in the booking value has been removed.
The calculator then applies your commission rate to the appropriate amount.
Commission calculated on the gross amount
If your commission is based on the gross booking value, enter the total booking value, commission rate and VAT rate that applies to the commission.
For example:
Gross booking value: £10,000
Commission rate: 10%
Commission:
£10,000 × 10% = £1,000
If 20% VAT applies to the commission:
VAT: £200
Total commission invoice: £1,200
Commission calculated on the net amount
Some commission agreements calculate commission on the net booking value rather than the gross amount.
In this case, the calculator uses the VAT rate on the booking to work out the net value first.
For example:
Gross booking value: £10,000
VAT on booking: 20%
Net booking value:
£10,000 ÷ 1.20 = £8,333.33
If commission is 10%:
£8,333.33 × 10% = £833.33 commission
If 20% VAT applies to the commission:
VAT: £166.67
Total commission invoice: £1,000
This is why it is important to know whether your commission agreement is based on the gross or net value.
Work backwards from an amount after commission
The calculator can also work backwards when you know how much was received after commission was deducted.
For example, if a venue pays £9,000 after deducting 10% commission, the original booking value was:
£9,000 ÷ 90% = £10,000
You cannot simply add 10% to £9,000, because the commission was calculated from the original booking value.
The calculator can perform this reverse calculation for both gross-based and net-based commission.
VAT on commission
The calculator keeps the VAT on the booking separate from the VAT on the commission.
When commission is based on a net booking value, the VAT rate on the booking is used to calculate the net booking value.
The VAT rate on commission is then applied separately to the commission amount.
For example:
Gross booking: £10,000
Booking VAT: 20%
Net booking: £8,333.33
Commission: 10% = £833.33
VAT on commission: 20% = £166.67
Commission invoice: £1,000
What is the effective commission rate?
The effective commission rate including VAT shows the total commission invoice as a percentage of the original gross booking value.
For example:
Booking value: £10,000
Commission: £1,000
VAT: £200
Total commission invoice: £1,200
£1,200 ÷ £10,000 × 100 = 12%
So a 10% commission rate becomes an effective rate of 12% when 20% VAT is added to the commission.
Important information
Commission arrangements can vary. Always check whether your agreement calculates commission on the gross or net booking value and which amounts are included in the commission calculation.
The calculator performs mathematical calculations based on the figures and rates you enter. It does not determine the terms of a commission agreement or whether VAT applies to a particular transaction or commission.