A worked example: 3% commission on a ₹2,50,000 sale
A ₹2,50,000 sale with a 3% commission rate produces a commission of ₹7,500, leaving the seller with a net amount of ₹2,42,500.
The formula: commission = sale × rate, net = sale − commission
Commission amount = sale amount × commission % ÷ 100: ₹2,50,000 × 3 ÷ 100 = ₹7,500. Net amount = sale amount − commission: ₹2,50,000 − ₹7,500 = ₹2,42,500 — a straightforward percentage deduction from a single base figure.
A second example: 2.5% on a larger ₹5,00,000 sale
A larger sale of ₹5,00,000 at a lower 2.5% rate produces a bigger commission in rupee terms, ₹12,500, and a net amount of ₹4,87,500 — showing how a lower percentage rate on a bigger base can still exceed a higher rate on a smaller one.
Why commission direction matters
Commission is subtracted from the sale amount to find what the seller nets — the opposite direction from a tip, which is added on top of a bill. Confusing the two directions on the same percentage-of-amount idea gives an answer with the right magnitude but the wrong sign.