On a betting exchange, seeing a “Green Book” (guaranteed profit) of $100 does not mean you have earned $100. Unlike traditional bookmakers who hide their margin in the odds, exchanges like Betfair, Smarkets, and Matchbook charge a Commission on your net winnings.
For high-volume traders, the situation gets even more complex with “hidden” taxes like the Premium Charge (PC), which can take up to 60% of your profits. Our Exchange Commission Calculator gives you the brutal truth: it calculates your True Net Profit after deducting the Base Rate, applying your Discount Rate (Betfair Points), and accounting for any top-up charges.
Exchange Commission Calc
Net Profit ToolCalculate your True Net Profit after deducting Base Commission and Premium Charges.
How to Use the Commission Calculator
This tool is designed to audit your trades before or after they settle. Here is how to navigate the fields:
- Gross Market Profit: Enter the profit figure shown on your exchange screen (the “Green” number).
- Commission Rate (%): Input the base rate of your exchange.
- Betfair Standard: 5% (can vary by country).
- Smarkets: 2%.
- Matchbook: Often 1.5% or 0% depending on offers.
- Discount Rate: If you are a regular user on Betfair, you earn “Points” that lower your commission. Enter your discount percentage here (e.g., 40%).
- Premium Charge (Advanced): If you are a highly successful bettor, check the “Apply Premium Charge” box. Enter the rate (usually 20% for standard PC, up to 60% for “Super PC”). The calculator will determine if a top-up fee is required.
Related Tools: To calculate the gross profit of a trade before worrying about commission, use our Lay Betting Calculator. If you are trading in-play and need to lock in a profit quickly, use the Live Hedging Tool.
Real-World Examples: The Cost of Winning
Fees are the silent killer of ROI. Let’s look at how they impact your bottom line.
Example 1: The Smarkets vs. Betfair Comparison
You have won $500 on a football match.
- Scenario A (Betfair Basic): 5% Commission. You pay $25. Net Profit: $475.
- Scenario B (Smarkets): 2% Commission. You pay $10. Net Profit: $490.
- The Difference: Simply by choosing the lower commission exchange, you keep an extra $15. Over 100 bets, that is $1,500 in saved fees.
Example 2: The Premium Charge Trap
You are a professional trader. You have won $10,000 gross profit over the week. You have paid $200 in standard commission (2%), but you fall under the 20% Premium Charge bracket.
- The Calculation: Betfair requires 20% of your gross profits ($2,000) to be paid in total charges.
- The Top-Up: Since you only paid $200 in commission, the calculator will show a “PC Top-Up” of $1,800.
- Reality Check: Your $10,000 win is actually an $8,000 win. Ignoring this calculation can lead to massive bankroll mismanagement.
Frequently Asked Questions (FAQ)
Do I pay commission on losing bets?
Generally, no. Most exchanges (Betfair, Smarkets) only charge commission on your Net Winnings in a specific market. If you have a net loss on a market, you pay zero commission. Note: Some exchanges like Matchbook may have different structures involving volume fees.
What is the Betfair Discount Rate?
Every time you bet on Betfair (win or lose), you earn “Betfair Points.” As you accumulate points, your Commission Rate drops. For example, a 5% base rate can be reduced to 2% if you have a high Discount Rate (e.g., 60%). This calculator allows you to input that discount to see your effective commission.
What is the Premium Charge?
The Premium Charge is an additional fee levied by Betfair on a small percentage of successful bettors (less than 0.5%). It applies if you are highly profitable over the long term and have paid less than 20% of your gross profits in commission. It ensures the exchange makes money from winners who otherwise pay very little commission.
Why does the calculator have a “Gross Loss” field?
Sometimes you may have multiple positions in a market. To calculate the commission accurately, the exchange looks at your Total Net Position. You enter your total wins and total losses in that market to find the Net figure that the commission is applied to.