How Are Affiliate Commissions Calculated?

Multiply the eligible sale amount by the commission rate. A $100 sale at 20% pays the affiliate $20. For a flat-rate program, pay the fixed amount instead. For recurring commissions, repeat the calculation for each eligible subscription payment.

Formula: commission = eligible sale amount × (commission rate ÷ 100). Use the calculator below to estimate payouts across multiple sales.

Sale AmountAverage sale price

Commission Rate25%

Number of Affiliates

Sales / Affiliate / Month

Projected Results

Commission Per Sale

$24.75

25% of $99.00

Monthly Revenue

$4,950.00

50 total sales

Monthly Commissions

$1,237.50

Paid to affiliates

$3,712.50

Revenue After Commissions

$59,400.00

Annual Revenue

$14,850.00

Annual Commissions

Estimate only. Revenue after commissions excludes product costs, taxes, refunds, and payment processing fees.

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Flexible Commission Rates

Set percentage or flat-rate commissions per affiliate, per product, or globally for your program.

Real-Time Tracking

Track every click, conversion, and commission in real-time with detailed analytics.

Automated Payouts

Pay affiliates automatically via PayPal or Wise when commissions are approved.

Multi-Tier Support

Support multi-level commission structures with tiered and recurring commissions.

Affiliate commission formula

For a percentage-based program, commission equals the eligible sale amount multiplied by the commission percentage divided by 100. If a customer pays $100 and the rate is 20%, the payout is $20. For 10 such sales, the total payout is $200.

Define what counts as the eligible sale amount in your program terms. For example, a program may calculate on the amount actually paid after discounts and exclude tax or refunds. A flat-rate program pays its stated amount per eligible conversion instead of a percentage.

What changes the calculation?

The payout depends on your commission model, eligible revenue, and approval rules. Subscription programs may pay on the first invoice or each renewal; refunds may reverse a pending commission; and tiered programs may apply different rates at different sales volumes. The calculator above models a single percentage rate on each sale. It does not subtract taxes, payment fees, refunds, or operating costs.

Frequently Asked Questions

What is a good affiliate commission rate?

The right rate depends on your gross margin, customer lifetime value, payback target, and whether you pay once or on renewals. Model the expected total payout before choosing a rate.

Should I offer percentage-based or flat-rate commissions?

Percentage-based commissions scale naturally with your pricing and encourage affiliates to promote higher-tier plans. Flat-rate commissions are simpler to communicate and predict. Many SaaS businesses prefer percentage-based because they align affiliate incentives with revenue growth.

How do recurring commissions work?

With recurring commissions, affiliates earn a percentage of every subscription payment the referred customer makes, not just the first one. This model is common in SaaS because it rewards affiliates for bringing in customers who stay long-term, aligning their incentives with retention.

How do I budget for affiliate payouts?

Multiply expected approved affiliate sales by the commission per sale. For recurring plans, estimate eligible renewals too. Compare the total payout with your margin and customer acquisition budget.