Enter the final price, hammer price, and premium rate into the calculator to determine the missing value.
Related Calculators
- Total Price Calculator
- Incremental Cost Calculator
- Reverse Fee Calculator
- Landed Cost Calculator
- All Business Calculators
Auction Premium Formula
The following formula is used to calculate the auction premium for a given hammer price and premium rate.
FP = HP + (HP * (PR / 100))
Variables:
- FP is the final price
- HP is the hammer price
- PR is the premium rate
To calculate the final price, add the hammer price to the product of the hammer price and the premium rate divided by 100.
What is an Auction Premium?
An auction premium, also known as a buyer’s premium, is an additional fee charged by the auction house on top of the hammer price of an item. This fee is typically a percentage of the hammer price and is paid by the buyer. The auction premium helps cover the costs of running the auction and can vary depending on the auction house and the type of auction. It is important for buyers to be aware of the auction premium as it affects the total cost of the item they are purchasing.
How to Calculate Auction Premium?
The following steps outline how to calculate the Auction Premium.
- First, determine the hammer price (HP).
- Next, determine the premium rate (PR).
- Calculate the premium amount by multiplying the hammer price by the premium rate divided by 100.
- Add the premium amount to the hammer price to get the final price (FP).
- After inserting the values 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.
Hammer Price (HP) = $1000
Premium Rate (PR) = 15%