Affiliate Commission Estimator

How to calculate affiliate commissions?

Net commissions are derived from gross sales volume minus a buffer for returned or fraudulent orders.

Formula: Commission = (Referrals * AOV * Rate) * (1 - Refund Rate)

Using the Affiliate Calculator: an example

Example: 100 referrals at a $50 Average Order Value with a 10% commission and 5% refund rate.

Step-by-step calculation:

1. Calculate Gross: 100 * $50 * 10% = $500
2. Calculate Refund Loss: $500 * 5% = $25
3. Deduct loss for a Net Payout of $475

Frequently Asked Questions

What is a typical refund rate?
Most e-commerce programs see 2-5%, while digital products may see higher

How does recurring commission work?
You earn a percentage of the customer's subscription fee every month they remain active

Why use a flat fee?
Flat fees are common for lead generation or fixed-price services where order value doesn't vary