Gross to Net Media Advertising Calculator

Formula

The formula to calculate the Net Media Cost (NMC) is:

\[ \text{NMC} = \text{GMC} \times \left(1 - \frac{\text{CR}}{100}\right) \]

Where:

$\text{NMC}$ is the net media cost ($)
$\text{GMC}$ is the gross media cost ($)
$\text{CR}$ is the commission rate charged by the advertising company for placing your ads (%)

What is Gross and Net Media Advertising?

Gross media advertising is the total amount spent on advertising or media. Net media advertising cost is the amount spent directly on the ads themselves minus the commission of the ad placing company.

Example Calculation

Let's assume the following values:

Gross Media Cost (GMC) = $10,000
Commission Rate (CR) = 15%

Using the formula:

\[ \text{NMC} = 10000 \times \left(1 - \frac{15}{100}\right) = 10000 \times 0.85 = 8500 \]

The Net Media Cost (NMC) is $8,500.