Consignment Commission Calculator
Consignment commission is straightforward in principle: take what sold, apply the split, and hand over the consignor's share. In practice, the maths compounds — different rates per consignor, discounted sale prices, refunds that need reversing, and multiple items in one payout statement. Here's how to calculate it accurately every time.
The basic formula
Every consignment commission calculation starts with two numbers: the sale price and the split percentage.
- Consignor share = sale price × consignor rate
- Store commission = sale price × store rate
- Where: consignor rate + store rate = 100%
Worked examples
Example 1: Standard 60/40 split
Item sells for $120. Consignor rate: 60%. Store rate: 40%.
- Consignor share: $120 × 0.60 = $72.00
- Store commission: $120 × 0.40 = $48.00
Example 2: Item marked down before sale
Item listed at $150, sold at $90 after markdown. Consignor rate: 60%.
- Commission is always on the actual sale price, not the original ask.
- Consignor share: $90 × 0.60 = $54.00
- Store commission: $90 × 0.40 = $36.00
Example 3: Multiple items, one payout
| Item | Sale price | Rate | Consignor | Store |
|---|---|---|---|---|
| Leather bag | $180 | 60% | $108.00 | $72.00 |
| Silk scarf | $45 | 60% | $27.00 | $18.00 |
| Wool cardigan | $65 | 55% | $35.75 | $29.25 |
| Total | $290 | $170.75 | $119.25 |
Example 4: Refund after payout
A $60 item (60/40 split) was paid out — consignor received $36. The item is then returned. The $36 needs to be recovered from the next payout or addressed directly. The store's $24 commission also reverses.
The rate question: what split is right?
Standard consignment splits range from 50/50 to 70/30 (consignor/store). The right split for your store depends on your category, your overhead, and what local consignors will accept. Antique and vintage stores often run 40/60 (consignor/store) because of higher sales effort; clothing consignment often runs 60/40 (consignor/store) because of faster turnover and lower margins.
Commission rates aren't just arithmetic — they're the basis of your relationship with every consignor. Set them clearly, put them in writing, and apply them consistently.
When commission calculation fails
Most errors happen at the point of sale: a sale attributed to the wrong consignor, a markdown that wasn't noted, or a refund that was never reversed in the ledger. The commission formula isn't the hard part — accurate attribution is. That's the case for systems that capture the consignor at the point of sale, not reconciled afterwards.