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Calculator for brands

Maximum commission rate calculator

The highest commission rate that still hits your target CPA or ROAS.

On a $60 order with $8 of other costs, a $18 CPA target allows up to 16.7 % commission and a 3× ROAS target allows up to 20 %. A 60 % gross margin runs out at 46.7 %.

Change any input and the result updates. The formula is further down.

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Max rate for the CPA target

16.7 %

(CPA − other cost) ÷ order value

Max rate for the ROAS target

20 %

(1 ÷ ROAS) − other cost ÷ order value

Rate that uses all margin

46.7 %

Margin − other cost ÷ order value

Example math. The result is a ceiling for one order, not a recommended rate.

The formula

  1. Max rate for a CPA target = (target CPA − other cost per order) ÷ order value
  2. Max rate for a ROAS target = 1 ÷ ROAS − other cost per order ÷ order value
  3. Rate that uses all the margin = gross margin − other cost per order ÷ order value
  4. Pick the lowest of the three if you need all targets to hold.

Questions people ask

Which of the three numbers should I use?
The lowest one that matters to you. The CPA and ROAS results come from your targets; the margin result is the ceiling where you stop making money on the order.
What counts as other cost per order?
Ad spend per order, payment fees, platform fees and shipping you do not recover. Anything that comes out of the order besides the creator commission.
Why can the result be zero?
If other costs alone exceed your target CPA, there is no room for commission at that target. Raise the target, lower the other costs or add a base instead.
Does repeat purchase change this?
Yes. If buyers reorder without a new commission, you can afford a higher rate on the first order. This calculator looks at one order only.