Choose whether to calculate the price including premium, the hammer or reserve price, or the effective premium rate. Enter the two requested values. A reserve-price estimate assumes the winning bid equals the reserve; it is not a separate buyer’s fee.

Add one flat buyer’s premium to a hammer price, or estimate the price if bidding ends at the reserve.

A reserve is the minimum hammer price for a sale. It is not a separate buyer’s premium; the actual winning bid may be higher.

Use the price basis selected above. Enter USD to the nearest cent.

Enter the auction’s actual rate, including 0 if none. Suggested values are examples, not current auction-house rates.

Related Calculators

Auction Premium Formula

The following formula calculates the price including one flat buyer’s premium. The premium amount alone is HP × PR / 100. Taxes, shipping, other fees and tiered schedules are excluded.

FP = HP + (HP × (PR / 100))

Variables:

  • FP is the price including premium, before other charges ($)
  • HP is the hammer price ($), or reserve price for an estimate
  • PR is the flat 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.

  1. First, determine the hammer price (HP).
  2. Next, determine the premium rate (PR).
  3. Calculate the premium amount by multiplying the hammer price by the premium rate divided by 100.
  4. Add the premium amount to the hammer price to get the final price (FP).
  5. Choose Price including premium, select the price basis, enter the price and rate, then select Calculate. Use the other solve modes to work backward.

Example Problem : 

Use the following variables as an example problem to test your knowledge.

Hammer Price (HP) = $1000

Premium Rate (PR) = 15%. Premium = $1,000 × 15% = $150; price including premium = $1,150 before other charges.

Auction Premium Calculator screenshot