Commission in Singapore: 5 Mistakes to Avoid
Works out commission, such as a property agent's fee. The maths is not complicated, but a handful of errors come up again and again in this and related loans & finance calculations. Here is what to watch for.
Cars in Singapore carry costs found almost nowhere else, including the Certificate of Entitlement and the Additional Registration Fee. Loans are capped at 60% or 70% of the price depending on the car's Open Market Value, and the maximum tenure is seven years.
Inflation erodes buying power, so a savings goal set in today's dollars needs to be adjusted upwards for the years it will take to reach it. Singapore's core inflation has varied widely over the past decade, so it is worth testing a range of rates.
1. Comparing flat rates with effective rates
A 3% flat rate can be close to 5.5% effective because interest is charged on the original amount for the whole term.
2. Mixing monthly and annual rates
Divide annual rates by 12 for monthly calculations and keep periods consistent.
3. Forgetting inflation
S$1 million in 30 years will buy much less than S$1 million today.
4. Paying only the minimum on a card
Minimum payments barely cover interest, so balances can take years to clear.
5. Only looking at the monthly payment
A longer tenure lowers the instalment but raises the total interest paid.
The correct method
Commission = sales × rate.
For example, with these inputs:
- Sales amount (S$): 1,500,000
- Commission rate (%): 2
the calculator returns:
- Commission: S$30,000.00
- Commission with 9% GST: S$32,700.00
Related calculations
- Emergency Fund Calculator: Sets a target for your rainy-day savings.
- Net Worth Calculator: Adds up what you own minus what you owe.
- Debt-to-Income Ratio Calculator: Shows what share of income goes to debt.
- Rule of 72 Calculator: Estimates how long money takes to double.
The Commission Calculator applies the formula consistently, so it is a quick way to double-check your own working.
Run your own numbers: Commission Calculator