Percentage of a Percentage Guide

Calculating a “percentage of a percentage” occurs frequently in commissions, tiered discounts, tax brackets, and probabilities.

Mathematical Formula

To find what $P_1\%$ of $P_2\%$ is: $\text{Combined } \% = \left(\frac{P_1}{100}\right) \times \left(\frac{P_2}{100}\right) \times 100\% = \frac{P_1 \times P_2}{100}\%$

If you have a base amount $X$: $\text{Final Amount} = X \times \left(\frac{P_1}{100}\right) \times \left(\frac{P_2}{100}\right)$

Practical Example

• What is 20% of 50%? $\text{Result} = \frac{20 \times 50}{100} = 10\%$
• If an agent receives a 10% commission on a 20% bonus of a $5,000 deal:
  • 20% of $5,000 =$1,000 (intermediate)
  • 10% of $1,000 =$100 (final commission, which is 2% of $5,000).