Commission Calculator UAE

Howuae Introducing the Commission Calculator UAE, your online Tool for effortlessly calculating commissions in the United Arab Emirates. Say goodbye to complex manual calculations and hello to accurate, efficient commission management tailored to the UAE’s diverse business landscape.

Commission Calculator UAE

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How to calculate commission

If you’ve ever wondered how to calculate commission, you’ll be pleased to know that it’s a straightforward process based on percentages. In this guide, we’ll break it down step by step and provide examples to illustrate the concept clearly.

Step 1: Understand the Basics

Calculating commissions revolves around percentages. The formula is simple: You take the sale price, multiply it by the commission percentage, and divide the result by 100. This gives you the commission amount.

The formula of calculation:

Commission Amount = Sale Price × Commission Percentage / 100

Example: Let’s say a red widget is sold for $120, and the salesperson earns a 10% commission on each sale. Using the formula:

Commission Amount = $120 × 10 / 100 = $12

So, the salesperson’s commission for this sale is $12.

Step 2: Consider Who Covers the Commission

After calculating the commission amount, you need to determine who will cover this cost. Typically, it’s the selling party, which is the entity that hired the salesperson. To calculate their actual revenue, you need to account for the commission paid.

The formula for Real Revenue:

Real Revenue = Sale Price - (Sale Price × Commission Percentage / 100)

Example: Using the red widget sale as an example:

Real Revenue = $120 - ($120 × 10 / 100) = $120 - $12 = $108

So, after paying the $12 commission, the selling party’s real revenue is $108.

Step 3: When Buyers Cover the Commission

In some cases, it’s the buyer who pays for the salesperson’s remuneration. To calculate the final price that the buyer pays, you’ll use the percentage increase formula.

The formula for Price with Commission:

Price with Commission = Base Price + (Base Price × Commission Percentage / 100)

Example: Continuing with the red widget sale:

Price with Commission = $120 + ($120 × 10 / 100) = $120 + $12 = $132

In this scenario, the buyer pays a total of $132, which includes the $12 commission.

"Waleed Al Shehhi" is a respected expert & CMA in UAE finance with over 13 years of experience in various finance and stock market roles. He served as a financial advisor within the UAE government for 5 years, gaining unique insights into the intersection of finance and policy. Waleed's expertise encompasses historical and cultural financial nuances in the UAE, and he's well-versed in market trends and risk management. With his extensive background, he offers valuable perspectives on gold's role as a hedge against inflation and understands global demand dynamics. His insights make him a trusted authority in UAE finance.