What is 70/30 Commission Split Calculator?
70/30 Commission Split Calculator is an online finance calculator that helps you to split the amount between two parties using the 70:30 ratio.
This 70/30 split calculator is mainly used in real estate and land deals where the salesperson or the agent receives the 70% of the amount while the rest 30% goes to the brokerage company. Another use case of this calculator is in Affiliate Marketing.
Just enter the total commission amount in the input field, and this calculator will automatically split and display the split amount.
How to Use the 70/30 Commission Split Calculator?
- Visit the 70/30 Commission Split Calculator page
- Enter the total commission amount in the commission input field
- Click on the 'Calculate' button to split the amount into 70/30 ratio
- Use the 'Reset' button to clear the contents of the calculator
Formula for 70/30 Commission Split
The formula used to calculate the commission split amount in a 70/30 commission split arrangement is:
CS = T x R
where,
- CS is the commission split amount
- T is the total commission amount
- R is the rate of commission split expressed in decimal (for example - 0.7 for 70% and 0.3 for 30%)
How to Calculate the Commission Split?
The commission Split can be calculated using the above formula. Here is the breakdown of commission split amount between two parties.
First Party (70%)
For the person receiving 70%, their commission split can be calculated by multiplying the total commission amount (T) by Rate of commission split which is 0.7 in this case.
First Party (70%) = T x 0.7
Second Party (70%)
For the other person receiving the rest 30%, their commission split can also be calculated by multiplying the total commission amount (T) by Rate of commission split which is 0.3 in this case.
Second Party (70%) = T x 0.3
Solved Example
Example: Philips and Mike together bought a commercial property for $120K. Philips contributed 70% of the amount while Mike contributed the rest 30% amount. They placed the property on rent and they are getting $2400 per month from the rent. Calculate the split amount both parties will receive.
Total Amount (T) = $2400
Philips Commission Rate (R) = 0.7
Mike Commission Rate (R) = 0.3
Philips (70%)
Philips commission split can be calculated using the formula: CS = T x R, and here R is 0.7.
CS = 2400 x 0.7 = $1680
Mike (30%)
Similarly, Mike commission split can be calculated using the formula: CS = T x R, and here R is 0.3.
CS = 2400 x 0.3 = $720
Thus, Philips will receive $1680 per month from the rent while Mike will get the remaining $720 dollars.
