How to Calculate Commission in Singapore: A Step-by-Step Guide
Works out commission, such as a property agent's fee.
Interest rates, instalments and returns compound over years, so a small difference in rate or tenure turns into thousands of dollars. Working the numbers out yourself makes it easier to compare bank offers, avoid expensive debt and plan savings goals.
What you need
- Sales amount (S$)
- Commission rate (%)
Step by step
- Enter the sales amount (S$).
- Enter the commission rate (%).
- The results update as you type, or press Calculate.
- Read the commission first, then the supporting figures below it.
The formula
Commission = sales × rate.
Worked example
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$32,700.00
A second example
Now change the inputs to:
- Sales amount (S$): 1,875,000
- Commission rate (%): 2
the calculator returns:
- Commission: S$37,500.00
- Commission with 9% GST: S$40,875.00
Practical tips
- Use realistic return assumptions; long-term projections at high rates can be very misleading.
- Compare loans by effective interest rate, not flat rate; the EIR is roughly double the flat rate.
- Check for early repayment penalties and processing fees before taking any loan.
- Paying credit card bills in full avoids interest charges of around 27% a year or more.
Background
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.
Interest in Singapore is quoted in several ways. Mortgages and savings accounts use effective annual rates, while car loans and many personal loans are advertised at flat rates that look much lower than their true cost. Banks must disclose the effective interest rate, and comparing on that basis gives a fair picture.
Compounding is the reason long-term saving works: returns earn further returns, so the growth curve steepens over time. The same maths works against you with debt, which is why credit card balances at around 27% a year grow quickly if only minimum payments are made.
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.
Want to skip the arithmetic? The free Commission Calculator does all of this instantly and updates as you type.
Run your own numbers: Commission Calculator