Enter the total commission and the rate of the split into the calculator to determine the commission split. This calculator can also evaluate any of the variables given the others are known.
70/30 Commission Split Formula
The following formula is used to calculate the commission split in a 70/30 commission split arrangement.
CS = T * R
Variables:
- CS is the commission split ($)
- T is the total commission ($)
- R is the rate of the split (decimal)
To calculate the commission split, multiply the total commission by the rate of the split. For a 70/30 split, the rate (R) would be 0.7 for the person receiving 70% of the commission and 0.3 for the person receiving 30% of the commission.
What is a 70/30 Commission Split?
A 70/30 commission split is a type of payment arrangement, often used in real estate or sales industries, where the salesperson or agent receives 70% of the commission earned on a sale, while the remaining 30% goes to the brokerage or company. This split is typically used to cover the costs of office space, marketing, administrative support, and other resources provided by the company. The exact percentage can vary depending on the company’s policies and the individual’s level of experience or performance.
How to Calculate 70/30 Commission Split?
The following steps outline how to calculate the 70/30 Commission Split.
- First, determine the total commission ($).
- Next, determine the rate of the split (decimal).
- Next, gather the formula from above = CS = T * R.
- Finally, calculate the Commission Split.
- After inserting the variables and calculating the result, check your answer with the calculator above.
Example Problem :
Use the following variables as an example problem to test your knowledge.
total commission ($) = 500
rate of the split (decimal) = 0.7
