Affiliate commission guide
Calculate Affiliate Commissions After Discounts and Refunds
Before multiplying by the commission rate, determine which part of a transaction is eligible. Discounts and refunds are common reasons the displayed product price differs from the amount on which commission is owed.
For the basic percentage formula and an interactive estimate, start with the affiliate commission calculator.
The formula
Commission = eligible paid amount × rate ÷ 100. Reversed commission = refunded eligible amount × original rate ÷ 100.
Worked example
A $100 item has a $20 discount, so the customer pays $80 before tax. If the program pays 20% on net paid revenue excluding tax, commission is $16. A later $30 partial refund reverses $6, leaving $10.
Define the commission base before launch
Your program terms should state whether commissions use list price or paid price, and whether tax, shipping, payment fees, credits, and coupons are included. The example above excludes tax and uses paid revenue; another program could choose different rules. The calculation must follow the rules you published to affiliates.
For multiple items, record the eligible amount per item if categories have different rates. A blanket percentage of the order total can overpay or underpay when only some items qualify. The checkout amount alone may not contain enough detail to calculate a correct payout.
Reverse or adjust refunded commissions
If the full $80 eligible amount is refunded, the $16 commission is reversed. If $30 of that eligible amount is refunded, reverse $6. A partial refund should not automatically remove the entire commission unless the program terms say so.
Hold commissions until the refund window closes if your payout process supports it. If a payout already occurred, record a negative adjustment on the affiliate ledger instead of silently changing historical totals. This preserves a clear trail from sale to refund to final payable amount.
Calculate your own payout
Write down the eligible amount, rate or fixed fee, qualifying events, and any refund or hold rules before calculating. Then use the free affiliate commission calculatorfor a percentage-based per-sale and monthly estimate.