Free tool
Travel Agent Commission and Markup vs Margin Calculator
Work out what a booking earns you. Set a selling price from a net rate with a target margin or markup, or enter a commissionable price and commission rate to see your commission and the supplier net. Then see what you keep after a host agency or consortium split, with margin and markup side by side.
You keep
£800.00
10% commission on a booking of £10,000.00 is £1,000.00; the supplier receives £9,000.00. After your 80% share, the host or consortium keeps £200.00.
Selling price
£10,000.00
Supplier net
£9,000.00
Margin (on price)
10%
Markup (on cost)
11.1%
| Selling price what the client pays | £10,000.00 |
|---|---|
| Supplier net price less commission | £9,000.00 |
| Commission 10% margin = 11.1% markup | £1,000.00 |
| Host or consortium share 20% | £200.00 |
| You keep 8% of the selling price | £800.00 |
| Percentage | As a margin, the markup is | As a markup, the margin is |
|---|---|---|
| 5% | 5.3% | 4.8% |
| 10% | 11.1% | 9.1% |
| 15% | 17.7% | 13% |
| 20% | 25% | 16.7% |
| 25% | 33.3% | 20% |
| 30% | 42.9% | 23.1% |
| 40% | 66.7% | 28.6% |
| 50% | 100% | 33.3% |
Estimates before tax, card fees and any override or incentive commission. Check your supplier and host agreements.
How the calculation works
- Commission. Selling price × commission rate. The supplier net is the selling price less the commission. A 10% commission on £10,000 is £1,000, and the supplier receives £9,000.
- Net rate plus margin. Selling price = net ÷ (1 − margin). A 20% margin on an £8,000 net rate gives £10,000.
- Net rate plus markup. Selling price = net × (1 + markup). A 25% markup on £8,000 also gives £10,000: a 25% markup and a 20% margin describe the same profit.
- Converting. Markup = margin ÷ (1 − margin); margin = markup ÷ (1 + markup). Commission is a margin, so a 10% commission is an 11.1% markup on the supplier net.
- Split. What you keep = commission or markup × your share. The host agency or consortium keeps the rest. The tool also shows what you keep as a share of the selling price.
What the tool doesn’t do
- It doesn’t know any supplier’s commission rate. Use the rate in your agreement; the typical ranges in the hints are rough guides.
- It works before tax, card fees, overrides and incentives. If you sell UK packages as principal, see the UK TOMS VAT calculator.
- It handles one booking at a time. To price a tour or experience from its costs, use the experience pricing calculator.
Questions & answers
What is the difference between margin and markup?
Margin is profit as a share of the selling price; markup is profit as a share of cost. A £8,000 net rate sold at £10,000 earns £2,000: a 20% margin but a 25% markup. To turn a margin into a markup, divide it by (1 − margin); to turn a markup into a margin, divide it by (1 + markup). Margin is always the smaller of the two figures for the same profit.
How do I price a net rate for a target margin?
Divide the net rate by (1 − margin). For a 20% margin on £8,000, that is £8,000 ÷ 0.80 = £10,000. Adding 20% to cost instead (£9,600) gives only a 16.7% margin, £400 short on this booking. The calculator shows both so a target agreed as a margin is not priced as a markup.
Is commission a margin or a markup?
Commission is a margin: a percentage of the selling price. A 10% commission on a £10,000 booking is £1,000, and the supplier keeps £9,000. Expressed as a markup on the supplier’s net it is 11.1% (£1,000 ÷ £9,000), which matters if you compare commissionable products with net rates you mark up yourself.
What commission do travel advisors usually earn?
It depends on the supplier and your contract, so use the rate in your agreement. One host agency puts traditional rates at about 10–15%, as low as 7% and as high as 28%. For tours and experiences sold through retail agents, industry guides give about 10–20%. There is no independent published survey of supplier commission rates, so treat these as rough guides.
How do host agency commission splits work?
A hosted advisor sells under a host agency’s supplier agreements and accreditation, and the commission is split between them. Host agencies’ own published figures put the advisor’s share at about 70–90%: for example 70% on an entry-level split or 90% at some hosts, sometimes alongside a monthly or annual fee. Some hosts charge a fee and pass on 100%. Enter the split in your own host agreement.
Does the calculator include VAT or taxes?
No. All figures are before tax. How VAT applies depends on whether you sell as an agent or as principal; in the UK, businesses selling travel packages as principal may fall under the Tour Operators’ Margin Scheme. Take advice on your own position.
Sources & data
Every figure this tool uses by default is listed here with where it came from and when we last checked it. Spotted something out of date? Tell us.
- Typical supplier commission paid to a travel advisorFora Travel on Host Agency Reviews (2023, updated 2024): “traditional commission rates hover between 10 and 15 percent, however, they can be as low as 7% and even as high as 28%”. A host agency’s sponsored article with no stated method, and US-focused. Rates vary by supplier, product and contract; check the supplier agreement. For tours and experiences sold through retail agents, see the experience pricing calculator’s sourced range (Rezdy and Arival: 10–20%).
- Share of commission a hosted travel advisor keepsFora Travel (2023, updated 2024): “Our entry-level commission split for Fora Advisors is 70%.” PTN Travel (2025): “Starting commission splits may be 70/30 (or lower)” and “every advisor who joins PTN starts at a 90% commission split.” Both are host agencies’ own sponsored articles, not survey data; splits can be lower, and some hosts charge a fee instead and pass on 100%. The Host Agency Reviews research report that covers commission trends is paid and was not checked. Enter the split in your own host agreement.
- Typical commission to a retail travel agent or advisorRezdy (updated August 2023): “retail travel agents earn about 10-20% of the retail price of your tours.” Arival (2023) lists “Travel agents: 10-15%”. Industry guidance, not survey data; luxury advisors and host agencies may negotiate higher.
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