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80/20 Commission Split Calculator

80/20 Commission Split Calculator

Created by Team y2calculate

Content written by James (BS economics)

Coding and design by Sajid khan (Ms computer science)

Reviewed by David (BS finance)

Fact checked 🔍✓

Published: October 16, 2023 → Last Updated: February 4, 2024

Table of Contents

How to use 80/20 split calculator

Here’s a breakdown of how to use it:

  1. Commission Split Selection:

    • The default commission split is set to 80/20 on page load.
    • You can change the default selection by choosing a different option from the dropdown menu labeled “Commission Split.”
  2. Custom Commission Input:

    • If you select “Custom” from the dropdown, two additional input fields will appear, allowing you to enter custom commission percentages for Agent One and Agent Two.
  3. Currency Selection:

    • Choose the currency from the “Currency” dropdown menu.
  4. Total Commission Input:

    • Enter the total commission in the input field labeled “Total Commission.”
  5. Calculate Button:

    • Click the “Calculate” button to perform the commission split calculation.
  6. Result Display:

    • The result will be displayed below the button, showing the commission for Agent One and Agent Two in the selected currency.
  7. External Link:

    • There is a link embedded in the result that redirects to an external page.
  8. Note:

    • The custom commission input fields are initially hidden and will only appear when “Custom” is selected from the dropdown.

Formula for 80/20 split

The formula to calculate commissions in an 80/20 split is:

\[ \text{Agent One Commission} = \text{Total Commission} \times \left(\frac{80}{100}\right) \] \[ \text{Agent Two Commission} = \text{Total Commission} \times \left(\frac{20}{100}\right) \]

Find the commissions for Agent One and Agent Two when the total commission is $10,000.

Answer:

Using the commission split formula:

\[ \text{Agent One Commission} = 10000 \times \left(\frac{80}{100}\right) \] \[ \text{Agent Two Commission} = 10000 \times \left(\frac{20}{100}\right) \]

Therefore, the commissions for Agent One and Agent Two are $8,000 and $2,000, respectively.

Examples

Here are a few examples of how you might use the 80/20 commission split calculator:

Example 1: Standard Commission Split

  1. Commission Split Selection:

    • If you want split the commission into 70/30 then Choose “70/30” from the “Commission Split” dropdown.
  2. Currency Selection:

    • You have a choice which currency you choose, but if you are from the USA Choose “United States Dollar (USD)” from the “Currency” dropdown.
  3. Total Commission Input:

    • Enter the total commission amount, e.g., 10000.
  4. Calculate:

    • Click the “Calculate” button.
  5. Result:

    • The calculator will display the commission amounts for Agent One and Agent Two in USD based on the 70/30 split.Agent one will receive $7000 and agent 2 will recicve $3000

Example 2: Custom Commission Split

  1. Commission Split Selection:

    • If you want to set your desired commission split percentage then Choose “Custom” from the “Commission Split” dropdown.
  2. Custom Commission Input:

    • Let’s say there are two agents, and the commission shared is 75% and 25% Enter Agent One’s commission as 75% and Agent Two’s commission as 25%.
  3. Currency Selection:

    • You have the choice to choose currency lets say you are from Europe Choose “Euro (EUR)” from the “Currency” dropdown.
  4. Total Commission Input:

    • Enter the total commission amount, e.g., 15000.
  5. Calculate:

    • Click the “Calculate” button.
  6. Result:

    • The calculator will display the commission amounts for Agent One and Agent Two in EUR based on the custom 75/25 split. Agent one will receive EUR 11250.00 and agent two will receive EUR 3750.00

Example 3: Changing Commission Split Dynamically

  1. Commission Split Selection:

    • Choose “80/20” from the “Commission Split” dropdown.
  2. Currency Selection:

    • Choose “British Pound (GBP)” from the “Currency” dropdown.
  3. Total Commission Input:

    • Enter the total commission amount, e.g., 12000.
  4. Calculate:

    • Click the “Calculate” button.
  5. Result:

    • The calculator will display the commission amounts for Agent One and Agent Two in GBP based on the 80/20 split.
  6. Changing Commission Split Dynamically:

    • Change the “Commission Split” dropdown to “Custom” and input custom commission percentages.

Feel free to experiment with different inputs and commission splits to see how the calculator dynamically adjusts the results based on your selections.

What is 80/20 split

An 80/20 commission split is a common arrangement in various industries, particularly in sales and real estate. In this context, it typically refers to the division of commissions earned between two parties, often a service provider (such as a salesperson or real estate agent) and their employing entity (such as a brokerage or employer).

Here’s a breakdown of how an 80/20 commission split calculator works:

  • 80% to the Service Provider: In an 80/20 split, the service provider, who is usually responsible for generating sales or deals, receives 80% of the total commission earned. This portion is their compensation for the work, effort, and skills they contribute to the business.

  • 20% to the Employer or Brokerage: The remaining 20% goes to the employer or brokerage that provides the platform, support, and resources for the service provider. This portion represents the compensation for the infrastructure, administrative support, and other resources that enable the service provider to conduct their work effectively.

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