# Thread: equation to calculate 12% referral fee based on final selling price

1. ## equation to calculate 12% referral fee based on final selling price

trying to create an expression to determine how to price a product for an online channel based on their 12% referral fee. the product price would need to consists of my price plus the referral fee. the trouble is that i cannot predict what the fee will be since it is based upon my final selling price. i'm thinking there needs to be a 2 level equation. the first one to calculate the estimated referral fee and the second one to add that value to my selling price?

2. ## Re: equation to calculate 12% referral fee based on final selling price

If we let n = your net price (i.e. the amount you want to net after the referral fee), let P = price to the customer (including the referral fee) then what you have is:

P = n + 0.12P

Rearrange:

0.88P = n

P = n/0.88

5. ## Re: equation to calculate 12% referral fee based on final selling price

okay i think i got this new equation figured out based upon your initial response. thanks again.

6. ## Re: equation to calculate 12% referral fee based on final selling price

the equation you have provided above on Feb 1st 2017, 10:46 AM works great for my needs EXCEPT for when the ultimate value of "0.12P" is less than 1. In this case, I need the equation to be:
P = n + 1

7. ## Re: equation to calculate 12% referral fee based on final selling price

Why don't you post a new revised problem...