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    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.

    1. Base Price Percentage: 100% Rate - 12% Commission = 88% Base Price Percentage
      Subtract the Commission Percentage from 100% to determine the Base Price Percentage.

    2. Base Price Divisor: 88 / 100 = 0.88
      Divide the Base Price Percentage by 100 to convert it to a fraction.

    3. 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.

    4. 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.

    5. 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.

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