Estimate your potential earnings and net profit from your affiliate marketing campaigns.
Total Revenue Generated:$0.00
Gross Commission Earned:$0.00
Commission Per Sale:$0.00
Net Profit (After Ad Spend):$0.00
How to Calculate Affiliate Marketing Commissions
Affiliate marketing is a performance-based revenue model where you earn a percentage of every sale you refer to a merchant. Understanding the math behind your commissions is vital for scaling your business and determining if your paid traffic campaigns are actually profitable.
The Basic Formula
The calculation for your total commission is straightforward:
Total Commission = (Product Price × Number of Sales) × (Commission Rate / 100)
Key Factors Influencing Your Earnings
Commission Structure: Some programs offer a flat fee (e.g., $50 per sale) while others offer a percentage (e.g., 10% of the cart value).
Cookie Duration: The time frame you have from the initial click to the purchase to claim credit for the sale.
Refund Rates: Most affiliate programs deduct commissions for products that are returned by the customer. Always account for a 5-10% refund rate in your long-term projections.
Conversion Rate (CR): The percentage of visitors who actually make a purchase. Higher CR means more sales from the same amount of traffic.
Example Calculation:
If you promote a software subscription that costs $100 with a 30% commission rate, and you generate 20 sales through a blog post, your gross earnings would be $600 ($2,000 total revenue * 0.30). If you spent $100 on social media ads to get those sales, your net profit is $500.
Why Net Profit Matters More Than Revenue
Many affiliate marketers focus on "Revenue" or "Gross Commission." However, if you are using paid advertising (PPC) to drive traffic, your Net Profit is the only metric that determines the sustainability of your business. Use our calculator to input your ad spend and ensure your return on investment (ROI) remains positive.
function calculateAffiliateEarnings() {
var price = parseFloat(document.getElementById('aff-price').value);
var rate = parseFloat(document.getElementById('aff-rate').value);
var sales = parseFloat(document.getElementById('aff-sales').value);
var costs = parseFloat(document.getElementById('aff-costs').value);
// Validate inputs
if (isNaN(price) || isNaN(rate) || isNaN(sales)) {
alert("Please enter valid numbers for Price, Rate, and Sales.");
return;
}
if (isNaN(costs)) {
costs = 0;
}
// Calculations
var totalRevenue = price * sales;
var commissionPerSale = price * (rate / 100);
var grossCommission = totalRevenue * (rate / 100);
var netProfit = grossCommission – costs;
// Display Results
document.getElementById('res-total-revenue').innerText = "$" + totalRevenue.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('res-gross-comm').innerText = "$" + grossCommission.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('res-per-sale').innerText = "$" + commissionPerSale.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('res-net-profit').innerText = "$" + netProfit.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
// Style adjustment for net profit
if (netProfit < 0) {
document.getElementById('res-net-profit').style.color = "#d32f2f";
} else {
document.getElementById('res-net-profit').style.color = "#2e7d32";
}
document.getElementById('aff-result-area').style.display = "block";
}