Mortgage Broker Commission Calculator

Upfront Commission and the Aggregator Split

Upfront commission is the settled loan amount multiplied by the entered upfront rate. This commission calculator then applies the percentage you keep and subtracts your fixed upfront deduction. Existing trail balances earn no new upfront commission in this forecast.

For the starting $1 million of new settlements, a 0.65% rate excluding goods and services tax (GST) produces $6,500 gross upfront commission. Keeping 90% leaves $5,850. The $150 fixed deduction reduces retained upfront commission to $5,700.

Use the commission-eligible settlement amount from your agreement, including any net-of-offset adjustment. The same retained percentage applies to upfront and trail here. Fixed deductions come after that split and remain payable even when commission is zero.

Select the basis used by both commission rates. A 0.715% rate including 10% GST becomes 0.65% excluding GST after division by 1.1. Enter fixed deductions and operating costs excluding GST. The Moneysmart GST calculation explains this conversion for taxable amounts.

Mortgage Broker Trail Commission

Trail commission is forecast each month from the remaining eligible balance, multiplied by the annual trail rate and divided by 12. Your retained percentage applies next, followed by the fixed monthly deduction. The annual rows total each set of 12 months.

The forecast starts with your existing book plus the new settlements. The example combines $4 million of existing eligible balances with $1 million of settlements. At 0.15% annual trail, 90% retained and a $20 monthly deduction, the first year's retained trail is $6,070.

Amortisation reduces balances through scheduled principal repayments. The annual principal-reduction setting approximates that effect with a constant percentage. Refinance or payout runoff then reduces the remaining balance separately. Both annual percentages convert to equivalent compound monthly reductions.

With 2% principal reduction and 10% runoff, 88.2% of the starting balance remains after a year. The example book closes year one at $4,410,000 and year five at $2,668,781. Its retained annual trail falls to $3,579 in year five.

These assumptions model a declining book without further lending. They do not reproduce each loan's repayment schedule, lender day-count convention, offset movements or arrears rules. The Mortgage and Finance Association of Australia remuneration factsheet explains how upfront, ongoing trail and clawbacks work.

Clawbacks and Net Revenue

A clawback returns previously earned upfront commission. An early loan exit also removes future trail. The forecast shows those amounts separately so lost future revenue is not counted as cash you must repay.

Enter the original amount of one exiting loan within your new settlements, its exit month and the percentage of upfront commission recovered. The model applies your retained share to that recovery and leaves fixed fees unchanged. It stops trail on the loan's remaining projected share from the exit month, after the general balance reductions.

For a separate example, enter $1 million of settlements, no existing book, 0.6% upfront and 0.12% trail. Keep 80%, set the upfront deduction to $100 and set monthly deductions and both annual reductions to zero. Before any exit, retained upfront commission is $4,700 and retained trail is $80 a month.

If a $500,000 loan exits in month 13 with 100% upfront recovery, the cash clawback is $2,400. Monthly retained trail falls to $40 from that month. Lost trail over the remaining 48 months is $1,920, and five-year retained commission after the clawback is $5,180.

The event settings express your own contractual recovery terms. General runoff reduces future balances but triggers no additional cash clawbacks. This is a commission estimator for scenario planning. Actual aggregator remittance matching, delayed payments and account reconciliation belong in your commission records.

Using the Forecast in a Brokerage Budget

Compare retained commission with operating costs to see what the opening book and entered settlements can cover. The starting example produces $29,433 of retained commission over five years. At $1,000 a month, operating costs total $60,000 and the remaining amount is negative $30,567 before income tax.

The model records upfront commission in month one and clawback cash in the event month. Monthly net cash includes those events, while annual trail excludes them. The exported file includes all 60 monthly rows and the five annual totals as plain numbers.

Run separate scenarios for settlement volume, retention and loan exits. A sales commission calculator that multiplies future pipeline by a rate can overstate available income. Keep uncompleted applications outside this settled-book forecast, and allow for income tax and payment timing in your business cash budget.