# Understanding affiliate commission calculation

https://help.circle.so/p/payments/affiliates/understanding-affiliate-commission-calculation

Category: [Payments](https://help.circle.so/p/payments) › [Affiliates](https://help.circle.so/p/payments/affiliates)

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_Last updated: August, 2026_

When setting up commission rates for your affiliate program, you can offer either a percentage-based commission or a fixed amount. This article explains how commissions are calculated and how changes to a member’s subscription can affect an affiliate's earnings.

> 💡  **Tip:** As an admin, you can view information about all commissions on the dedicated commissions page. To learn more, see [**View commissions earned by affiliates.**](/p/payments/affiliates/view-commissions-earned-by-affiliates)

## **Calculating commissions**

Let’s take a look at important details regarding how we calculate commissions:

- Commissions are calculated based on the paywall purchase amount, **excluding** tax.

- Commissions and payouts are always calculated in  **USD** , irrespective of the paywall's currency. We ensure accuracy by downloading currency exchange rates daily, and commissions are computed based on the daily rate.

- You can apply a default commission rate across all selected paywalls and their associated prices, or [**override**](https://help.circle.so/p/payments/affiliates/set-up-an-affiliate-program) it for a specific paywall or price.

- If your paywall includes recurring subscriptions or installment pricing, you can opt to grant commissions for every successful recurring payment or choose to set a specific limit on the number of recurring payments eligible for commissions.

- Only paid purchases are counted in commission calculations. If a visitor initially starts with a trial, the conversion and payout will be considered once the paid subscription/installment becomes active.

- When a potential member uses a coupon to purchase a paywall, the affiliate's commission will be calculated based on the discounted payment amount, not the original price.

- If a purchase is made using a 100% coupon, resulting in a total amount due of $0, no commission, either percentage-based or fixed, will be calculated and awarded to an affiliate. Also, fixed amount commissions will be awarded only if the paywall amount paid by the member is greater than or equal to the fixed commission amount.

## **Impact of subscription changes on commissions**

Members can switch between billing cycles or subscription plans within the subscription group. When any adjustments are made to the member's subscription plan or billing cycle, the affiliate receives the updated commissions on future payments. This updated commission will be based on the new subscription payment amount and commission rate associated with the paywall.

Additionally, if a member had applied a coupon to their initial purchase, it will be transferred to the new plan, provided the coupon is configured to apply to all paywalls or to the specific one they are upgrading or downgrading to. As a result, the affiliate will receive a commission based on the discounted amount of the new subscription.

## **Impact of refunds on commissions**

If you issue a refund to the member within the specified  **Pending commission length** , the affiliate's commission will be adjusted to reflect the new refunded amount.

For instance, if your pending commission length is set to 30 days and the commission rate is 10%, let's say a member purchased a paywall via an affiliate link for $100, but after a week, you issued them a $40 partial refund. Since the refund happened within the 30-day pending period, the affiliate's commission will be updated to reflect the adjusted sale amount.

## **Impact of cancellation or restart of paywall plan on commissions**

If a paywall membership is set to cancel at the end of the current billing period and the member restarts it, the affiliate's commission calculation will resume. If the member had previously applied for a coupon, it will also be reinstated, and the affiliate’s commission will be calculated based on the adjusted price.

In cases where a paywall purchase has already been canceled, but the member buys it again through checkout, the affiliate won’t receive a commission for the renewal.

## Relevant articles

- [**Set up an affiliate program**](/p/payments/affiliates/set-up-an-affiliate-program)

- [**View commissions earned by affiliates**](/p/payments/affiliates/view-commissions-earned-by-affiliates)

- [**View affiliates and their referral activity**](/p/payments/affiliates/view-affiliates-and-their-referral-activity)

- [**Manually attribute paywall sales to affiliates**](/p/payments/affiliates/manually-attribute-paywall-sales-to-affiliates)