Log a Service Request for assistance from our Customer Support Team.

    Alternatively, enter your question below to request a new article in the Help Centre.


    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.

    Was this article helpful?

    Send Feedback

    Can’t find what you’re looking for?

    Our team of RMS experts are here for you!

    Submit a Question