Affiliate commission guide
How to Calculate Recurring Affiliate Commissions
A recurring affiliate commission is calculated separately for every qualifying subscription payment. The total depends on the payment amount, the rate, and how long the program continues paying the affiliate.
For the basic percentage formula and an interactive estimate, start with the affiliate commission calculator.
The formula
Total recurring commission = sum of (each eligible subscription payment × commission rate ÷ 100).
Worked example
A customer pays $100 in month 1, $100 in month 2, and $150 after an upgrade in month 3. At 20%, the affiliate earns $20 + $20 + $30 = $70, if all three invoices qualify.
Calculate each invoice, not just the signup
Create one row per paid invoice with the eligible amount, applicable rate, affiliate, and commission status. If a customer cancels before month 4, there is no month-4 payment and therefore no month-4 commission. If the program pays only on the first invoice, the same example pays $20 rather than $70.
Some programs cap recurring payouts at a fixed number of months or a maximum total amount. Apply the cap after listing the eligible invoices. For example, a two-payment window would count the first two $100 invoices and exclude the $150 upgrade invoice, producing $40.
Handle changes in subscription amount
An upgrade, downgrade, coupon, or proration can change the amount actually charged. Calculate on the commission base defined in the program terms, not an old list price. If a $100 plan is discounted to $80 and the rules use paid revenue, 20% is $16 for that payment.
Keep acquisition and renewal rules explicit. A program might pay 25% on the first invoice and 10% on renewals. In that case, apply the correct rate to each invoice before adding them. Forecasts should state whether they assume no churn; actual payouts must use actual qualifying payments.
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. For this model, also see Compare SaaS commission models.