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Affiliate Income

Affiliate revenue is a chain of multiplications, and each weak link costs proportionally. This computes earnings from traffic through to commission, and reports earnings per click — the metric that lets you compare offers.

Sales
60
Revenue
$4,800
Commission
$480

How to use the Affiliate Income

  1. Enter monthly visitors and the click-through rate to your affiliate links.
  2. Enter the conversion rate on the merchant's site.
  3. Enter average order value and commission rate.
  4. Read total revenue and earnings per click.

How the calculation works

Revenue = visitors × CTR × conversion rate × AOV × commission. Earnings per click, EPC, is revenue ÷ affiliate clicks, and it is the number that makes different programmes comparable regardless of their traffic scale. A high commission rate on a low-EPC offer is often worse than a modest rate on something people actually buy.

Two adjustments make the estimate realistic. Return and cancellation rates claw back paid commissions — apparel runs 20–30% returns, digital products almost none — and cookie windows determine whether a delayed purchase credits you at all: 24 hours on some marketplaces versus 30 to 90 days elsewhere. Recurring commissions on subscription products change the maths entirely, since lifetime value rather than first sale drives the return.

Formula
Revenue = visitors × CTR × CR × AOV × commission ; EPC = revenue / affiliate clicks

Source: Standard affiliate funnel accounting with EPC as the cross-programme comparison metric.

Worked example

45,000 visitors, 3.2% CTR, 2.8% conversion, 168 AOV, 7% commission, 12% returns.

  1. Affiliate clicks = 45,000 × 0.032 = 1,440.
  2. Sales = 1,440 × 0.028 = 40.3.
  3. Gross commission = 40.3 × 168 × 0.07 = 474.
  4. After 12% returns = 417.

About 417 a month, an EPC of 0.29 — the figure to compare against other programmes.

Frequently asked questions

What is EPC and why does it matter?+

Earnings per click. It normalises for traffic volume, so it is the only fair way to compare two offers.

Is a higher commission rate always better?+

No. A 4% rate on a product people buy beats 30% on one they do not.

What is a cookie window?+

How long after the click a purchase still credits you — from 24 hours to 90 days depending on the programme.

Do returns reduce my earnings?+

Yes. Commissions on returned orders are reversed, which matters most in apparel and electronics.

Last reviewed August 31, 2026. We review this page whenever the underlying formula, tax year, published rate or standard changes.

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