NET Multiplier Examples
Calculations and examples for common commission amounts to use the Net Multiplier in RMS
Net Multiplier Examples
| Commission Percentage | Multiplier |
|---|---|
| 10% |
1.1111 |
| 11% |
1.1236 |
| 12% | 1.1364 |
| 13% | 1.1494 |
| 14% |
1.1628 |
| 15% |
1.1765 |
| 16% |
1.1905 |
| 17% |
1.2048 |
| 18% |
1.2195 |
| 19% |
1.2346 |
| 20% |
1.2500 |
Net Multiplier Formula
The following formula can be used to determine the appropriate NET Multiplier for the commission amount.
In this example we are using a 12% commission amount.
-
Base Price Percentage: 100% Rate - 12% Commission = 88% Base Price Percentage
Subtract the Commission Percentage from 100% to determine the Base Price Percentage.
-
Base Price Divisor: 88 / 100 = 0.88
Divide the Base Price Percentage by 100 to convert it to a fraction.
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Retail Price: $100 / 0.88 = $113.64
Divide 100 by the Base Price Divisor to determine the Retail Price for 100.
Round to 2 decimal places.
-
Multiplier: (100 / 0.88) / 100 = 1.1364
Divide 100 by the Base Price Divisor and then divide by 100 to determine the Multiplier.
Round to 4 decimal places.
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Gross Rate: $100 * 1.1364 = $113.64
Multiply 100 by the Multiplier determined in Step 4 to confirm the same Retail Price (Gross Rate) is reached as in Step 3.