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Can I afford this commission rate?

Enter your numbers below. Get the answer first, then Koala's next move.

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Numbers to enter
Use the dollars from a typical order. Koala works out the absolute commission ceiling from the direct economics entered, without applying a generic affiliate rate.

Use the average order you expect an affiliate to generate.

Direct supplier or product cost for the typical order.

Enter the actual percentage your payment provider takes. Leave at 0 if not relevant.

Packing, handling or another direct per-order cost.

Koala's Calculated Result
Commission capacity after the direct order costs entered, before wages, other fixed costs and profit.

Enter the numbers you know

The detailed explanation will appear here once the calculator has a result.

Add a positive typical order amount and the direct order costs that apply.

Koala's Professional Opinion

Give Koala your numbers first

The decision and next steps will appear here.

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Definition and method

What this calculator answers

See the mathematical commission ceiling left by the order economics you enter. Treat it as a boundary, not a recommended rate.

Contribution available before commission

Start with selling price and subtract the product cost, processing fees and other per-order costs entered. The amount left is the contribution available before affiliate commission.

Worked example: your figures

The interactive result above is the worked example. Change any input and the same deterministic engine recomputes the answer; this page does not insert a generic example business or silently treat example values as a benchmark.

  • No market benchmark or outcome is silently inserted by this page.

What should I check next?

Frequently asked questions

What does this calculator solve?

It solves the mathematical commission ceiling where the contribution available before commission reaches zero. That is a zero-contribution boundary, not the commission rate you should set. The operating rate should leave the contribution buffer you choose.

Affiliate Commission

Why does commission need to be lower than margin?

Every commission $1 is a $1 of pre-tax gross profit. The commission % has to stay below the gross-margin % or the per-sale contribution is gone. Lower fees and lower per-sale costs both raise the commission room.

Affiliate Commission

Should the commission be flat % or tiered?

Tiered commissions reward volume but can overrun margin at the high end. A flat-rate or low-step tier protects margin at the cost of simpler upside. Pick based on the program's strategic role — a path to acquire, or a path to scale.

Affiliate Commission

How does this differ from the break-even ROAS calc?

Break-even ROAS sets the minimum revenue per ad dollar at the chosen margin. Commission ceiling sets the maximum payout per sale at the same margin. Both are derivations of the same math at different surfaces, and the right program uses both together.

Affiliate Commission

Educational use, not financial advice. Numbers are estimates for planning; consult a qualified professional before acting on them.