How to calculate a consignment split: clear examples for shop owners

To calculate a simple consignment split, multiply the agreed selling-price base by the consignor's percentage. Subtract that amount from the same price to find the store's share. If an item sells for $80 and the consignor receives 60%, their share is $48 and the store's share is $32, before any separate fees or adjustments.

The arithmetic is straightforward. The mistakes usually happen earlier: entering the store's percentage instead of the consignor's, using the ticket price after an item has been marked down, or treating an estimated share as the amount ready to pay out.

This guide walks through those decisions. You can follow the examples with our free consignment split calculator, which requires no signup.

Say who receives each percentage

"We use a 60/40 split" leaves an important question unanswered: who gets the 60%?

Write the arrangement in full: 60% to the consignor and 40% to the store, or the reverse. In this article, the consignor is the person who supplied the item; the store sells it on their behalf.

Shopify's overview of consignment identifies the commission split, pricing authority, and payment schedule as separate agreement terms. Keep them separate in your own explanation too. A percentage tells someone how a sale is divided. It does not, by itself, tell them which discounts are permitted or when they will receive payment.

All rates and prices below are fictional examples for learning the calculation. They are not recommended rates or a statement of any particular store's terms.

Use two calculations and a reconciliation

For a simple percentage split with no separate deductions:

Consignor share = selling-price base × consignor percentage ÷ 100.
Store share = selling-price base − consignor share.
Check that the two shares add back to the selling-price base.

Here are three examples:

An $80 sale with 60% to the consignor gives the consignor $48 and the store $32. The check is $48 + $32 = $80.
A $75 sale with 40% to the consignor gives the consignor $30 and the store $45. The check is $30 + $45 = $75.
A $95 sale with 50% to the consignor gives each party $47.50. The check is $47.50 + $47.50 = $95.

Label both amounts when you share an estimate. "Your share is $30 at a 40% consignor rate" is easier to understand than a bare "40/60" beside a price.

Check the price after a markdown

Suppose a jacket has a $100 ticket price, sells for $80 after an approved markdown, and the agreement gives the consignor 60% of the final selling price.

The consignor's share is $80 × 60% = $48. The store's share is $32. Calculating 60% of the old $100 ticket would produce $60, which is $12 more than this agreement provides for that sale.

That example assumes both shares are based on the reduced selling price. A store-funded discount or another agreed pricing arrangement can work differently. Confirm the policy before treating the example as your shop's calculation.

Our public calculator uses the final selling price you enter. It does not decide whether a markdown is authorized or model a separate store-funded discount. If you are reviewing stock before deciding on a price change, see what happens to unsold consignment items.

Make the last cent add up

A percentage can produce part of a cent. For example, $19.99 × 50% = $9.995.

The free ConsignEngine calculator rounds the consignor's share to the nearest cent, with half cents rounded up. It then gives the store the remainder. In this example, the consignor receives an estimated $10.00 and the store receives $9.99, totaling $19.99.

If you independently round both halves up to $10.00, you end up allocating $20.00 from a $19.99 sale. That is why the remainder check matters, even on a small item.

Use the rounding method your operational system and agreed process require. The public calculator's method explains its estimates; it is not a promise that every consignment system calculates settlement in exactly the same way.

Keep the split separate from the payout balance

A share of one sale is only one piece of a consignor's account. Recorded returns, fees, earlier payments, and other account adjustments can affect what is available to pay. Payment timing is another question again.

For example, a consignor might earn $48 on a sale but already have received $20 toward that amount. With no other activity or adjustments, the remainder would be $28. Recalculating the sale's split would still show $48; it would not discover the earlier payment.

The free calculator estimates only the division of a selling price. It excludes taxes, fees, refunds, account adjustments, and payout timing. It does not look up accounts, save its inputs, or change a store's financial records. Use the same currency throughout an example; the calculator does not convert currencies.

For the process after a sale, our guide to automated consignor payouts explains calculating a balance, recording a payment, and sending the money.

Check these details before explaining a split

Before giving someone a figure, confirm:

The percentage belongs to the consignor, with the store's remainder clearly labeled.
The price is the agreed calculation base, including the correct treatment of any markdown.
Both shares use a consistent rounding method and add back to that price.
Any excluded fees, taxes, adjustments, or previous payments are understood.
The person knows whether the number is a sale estimate or an actual available payout balance.

The store's share is also not automatically its profit. It still has to cover the shop's costs. Keep that distinction clear when reviewing how an agreement works for the business.

Start with one item in the free split calculator, then change the consignor percentage or selling price to compare examples. For intake conversations, the printable consignment intake checklist can help staff remember the information to discuss and record. It is a workflow aid, not a replacement for your agreement.