Consignment Payout Calculator
A consignment payout is the amount you owe a consignor after their items sell. Getting it right matters — both for your books and for the trust that keeps consignors bringing you stock. Here's the complete calculation method: the base formula, how to handle complications, and a worked multi-consignor payout example.
The base payout formula
For each sold item:
- Consignor payout = Sale price × consignor rate
- Store commission = Sale price × store rate
- Where consignor rate + store rate = 100%
Example — item sells for $80, consignor is on 60%:
- Consignor payout: $80 × 0.60 = $48.00
- Store commission: $80 × 0.40 = $32.00
Handling a markdown
If you marked the item down before it sold, the payout is always calculated on the actual sale price, not the original asking price.
Item listed at $120, marked down to $75, consignor rate 60%:
- Consignor payout: $75 × 0.60 = $45.00
- Store commission: $75 × 0.40 = $30.00
Note: if your consignment agreement requires you to notify consignors before marking down, document that step. It prevents disputes later.
Multi-item payout for one consignor
Sum each item's payout, then total.
| Item | Sale price | Rate | Consignor payout |
|---|---|---|---|
| Denim jacket | $95 | 60% | $57.00 |
| Silk blouse | $40 | 60% | $24.00 |
| Leather belt | $30 | 65% | $19.50 |
| Total | $165 | $100.50 |
Handling a refund within a payout period
If a sale is refunded before payout, remove it from the totals entirely.
If the refund happens after you've already paid out, you have two options:
- Deduct from next payout. Most common — note the negative adjustment in the next statement and reduce the payment accordingly.
- Request return of funds. Appropriate for large amounts, but damages the consignor relationship. Only for unusual cases.
Handling multiple payout schedules
If some consignors are paid monthly and others fortnightly, run each as a separate calculation for the relevant period. Don't mix payout windows in the same calculation — it creates errors when items sold in one period appear in another consignor's statement.
Building a payout statement
A proper payout statement should include, per consignor:
- Consignor name and reference
- Payout period (start and end date)
- Each item that sold: description, date, sale price, rate, consignor amount
- Any deductions (refunds, fees if applicable)
- Total payout amount
This isn't just good practice — it's what allows disputes to be resolved cleanly and what builds consignor trust over time.
When the calculation gets complicated
Flat-rate consignment maths is straightforward. It gets complicated when you have: tiered rates (rate changes after the item has been on the floor for 60 days), split-item sales (one transaction, multiple consignors), or bundle discounts (two items sold together at a reduced combined price). If any of these apply to your store, make sure your agreement documents how each case is handled — and test your calculation method against each scenario before it comes up for real.