Commission Calculator

Written by: Alex Windsor
Fact checked by Brian Webb  
Updated: July 10, 2024

If you are used to a traditional bookmaker, then you probably don’t know much about commission. This is a fee charged on betting exchanges, where, unlike normal bookmakers, a commission is charged on your net winnings for a bet you placed. Commissions are not a thing for normal bookmakers since these are factored into the odds you get.

Bet Information

I've backed a market, now I want to lay it

A commission calculator helps you determine the difference between the back odds on a betting exchange and what the bookmaker has. Having a commission calculator is of the utmost importance when you want to make the most out of your picks. Betting exchanges will often have commissions ranging from 2% to 8%.

A lot of number crunching goes into determining the commission you’ll pay outright and the profit after commission, but our free-to-use calculator covers all the bases. Simply input your stake, the market odds, and the commission rate, and our tool will tell you what exchange commission you are expected to pay.

Plus, the profits after the commission.

Understanding the Markets on Betting Exchanges

Betting exchanges often have a hidden commission on different markets across events they have available for you to bet on. For this reason, the odds on a betting exchange are often higher than those you get on a bookmaker.

The commission is calculated using the following equation:

Commission charged = ((Stake x Odds) – Stake) x Commission Rate

Let’s take a match between West Ham United and Newcastle United. The 1×2 odds for a Newcastle United win over West Ham United are 23/50 (1.46) by a bookmaker and 12/25 (1.48) by a betting exchange, with the betting exchange’s commission set at 2%. You are likely to wonder which of the two offers better value.

Going by the odds, this means that Newcastle United’s win in the game would pay out £148 if you placed a £100 wager. Your winnings include the £100 you staked and £48 as the win you get. Since a betting exchange charges commission on net winnings, your £48 winnings would be subject to such when paid to you.

For this example, the commission charged would be calculated as:

((£100 x 1.48) – £100) x 2% = £0.96.

And

Net Profits – Commission Charged = Profit after commission

£48 – £0.96 = £47.04 (the amount you get)

Since commissions eat into your net winnings, some betting exchanges have created discount points that slash off some of your commissions on a market. Points like these help you lower the commission but are often valid for a week.

How to Use Our Free Commission Calculator

Our commission calculator is based on a mathematical formula that we would rather not bog you down with. This is what our automatic commission calculator is for. Simply key in the stake, odds for your pick, and commission rate, and it churns out the commission you would be paying if the bet won.

The calculator has fields for both the back and lay odds you get from the betting exchange—still, the slots remain the same as described above. Enter these, and the calculator will give you the commission charged on the bet and the resulting profit.

Why You Need A Commission Calculator

Betting exchanges can have odds that look lucrative at first glance, but you wouldn’t know how much you stand to win if you did not know the commission charged on your bet. This is the very reason you need our commission calculator. Sports punters like to check different betting sites to see what platform offers the best value. Sometimes, the difference may seem insignificant, but even the slightest of these may mean more or less winnings for you. Using our commission calculator is key in picking odds that tip the scales in your favour.

Cost saving is another reason you will find a commission calculator invaluable when playing at a betting exchange. With commissions laid out, you are able to map out your betting costs much more effectively. What this means is that a bettor would have to find bigger odds to achieve their desired winnings once they find out how much the betting exchange will keep in the form of commissions if they placed their current pick as a bet.

A commission calculator like our own would also work well for bettors looking for value or sure bets. In this case, bettors can exploit mispriced odds, gaining more winnings from the wagers. Professional punters use this strategy to consistently beat bookmakers by only picking bets with overpriced odds.

Conclusion

As the aficionados will tell you, a commission calculator like the one we provide is one of the surefire ways to place risk-free bets. A tool like this is indispensable when you want to grow your bankroll. As mentioned before, slight changes in back and lay bets can make all the difference in your profits, especially if you are playing accumulators. While betting is fun and often done casually, it pays to have a tool like this that lets you take advantage of moving odds, giving you more control over your bets.

Bet £10, Get £50 In Free Bets
New customers only. Register with SUMMER50. Deposit £10+ and place first bet £10+ at Evens (2.0)+ on Sports within 7 days to get 3 x £10 in Sports Free Bets & 2 x £10 in Acca Free Bets within 10 hours of settlement. 7-day expiry. Eligibility & payment exclusions apply. Full T&Cs apply.
Bet £10 Get £35 In Free Bets
*New UK customers (Excluding NI) only. Mobile exclusive. Min Deposit £10. Min stake £10. Min odds Evs. Free bet applied on 1st settlement of any qualifying bet. 30 days to qualify. Free bets expire in 7 days. Cashed out/Free Bets won’t apply. Account & Payment method restrictions apply. 1 Free Bet offer per customer, household & IP Address only. 18+. T&Cs apply
Bet £10, Get £30 In Bonuses
18+ New customers only. Opt in & bet min £10 on any sports market at min odds of 1/1 (2.00)+ No cash out. Get £20 in Free Bets, £10 Live Casino Bonus + 30 Free Spins for selected slots. 40x wagering for the bonus, max withdrawal £250, valid 30 days. Free Bets expire in 7 days. Debit Card/Apple Pay Payments only. T&Cs Apply, see below. begambleaware.org | Please gamble responsibly

Alex, a ten-year iGaming industry veteran and Managing Editor at BettingTools specializes in sports betting and betting tools. He also provides insightful reviews, ensures the accuracy of all offers, and maintains content quality helping you make informed choices. Combining professional expertise with a passion for football and soccer, Alex ensures we offer you a reliable resource, focusing on betting tools to assist with odds, accas, and other betting strategies.