Estimate upfront and trail commission on a settled loan — and what it’s really worth over the life of the loan after your aggregator split. Model a single deal or your whole month.
The loan & your rates
Upfront commission (net of split)
Plus ongoing trail while the loan is held.
How brokers use this
- Value a deal properly. The upfront is only half the story — a loan that stays on the books for years is worth far more once trail is counted.
- Model your month or your book. Plug in your average loan size and monthly settlements to project income, or your total book to value your trail.
- Set your split expectations. Adjust “your share” to see the real net after your aggregator or group’s split.
- Pair it with the clawback calculator. Upfront looks great until a deal discharges early — always weigh commission against clawback exposure.
How broker commission works in Australia
Lenders pay mortgage brokers two types of commission. Upfront commission is a one-off payment when the loan settles, typically a fraction of a percent of the loan amount (often around 0.65%, before GST and any aggregator split). Trail commission is an ongoing annual payment, usually calculated on the loan’s outstanding balance (commonly around 0.15–0.20% p.a.), paid for as long as the loan is maintained.
Because trail is paid on the reducing balance, it declines as the loan is paid down — but over a loan held for many years it can add up to more than the upfront. This calculator projects the trail across the life of the loan using your interest rate and term, then applies your commission share to estimate the total. Under Best Interest Duty, commission must never drive a recommendation — but understanding the economics of your book is essential to running a sustainable business.
Frequently asked questions
Are these commission rates standard?
They’re typical ranges, but exact upfront and trail rates vary by lender and aggregator, and change over time. Enter your own agreement’s figures for an accurate estimate.
Is commission calculated before or after GST?
Lender commissions are generally paid plus GST, which is remitted to the ATO. This calculator works on the commission rate you enter — set it to reflect your net position if you prefer.
Does trail really outweigh the upfront?
Over a long-held loan it often does. That’s why retention matters so much: keeping a client (and defending against refinances and clawbacks) protects years of trail income.
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Disclaimer: This calculator provides estimates for general business-planning purposes only and is not financial or taxation advice. Actual commission depends on your lender and aggregator agreements, GST treatment, and how each lender calculates trail. Commission must never influence credit recommendations, which are subject to Best Interest Duty.