Free tool · for operators and drivers
Taxi rent vs commission calculator
Weekly rent and commission cost a driver the same when weekly fares equal the rent divided by the commission rate: £150 rent against 20% commission breaks even at £750 a week. Above that, rent leaves the driver more; below it, commission does. Enter the two offers to see both deals across quiet and busy weeks.
The two deals
Weekly rent against commission
The figures shown are examples. Use the two offers you are comparing.
Currency
The two deals are equal at
£750 a week
£150 rent ÷ 20% commission. Above it rent leaves the driver more; below it commission does.
Across a quiet week and a busy one
| Weekly fares | Driver keeps, commission | Driver keeps, rent | Operator receives (commission / rent) |
|---|---|---|---|
| £450 | £360 | £300 | £90 / £150 |
| £675 | £540 | £525 | £135 / £150 |
| £900 | £720 | £750 | £180 / £150 |
| £1,125 | £900 | £975 | £225 / £150 |
| £1,350 | £1,080 | £1,200 | £270 / £150 |
Rent is fixed, so it rewards busy weeks and costs most in quiet ones; commission moves with takings, so the operator shares both. Fuel, insurance and the car are left out because they are the same under both deals unless the offers say otherwise.
How it works
Fixed rent or a share of fares
Taxi and private hire operators charge drivers in one of two ways, sometimes both. Weekly rent (also called a settlement, circuit fee or radio rent) is a fixed amount for the work, and sometimes the car. Commissionis a percentage of each fare. The driver keeps fares minus rent under one, and fares times (1 − commission) under the other.
Setting the two equal gives the break-even takings: rent ÷ commission rate. Below that line commission is cheaper for the driver, because they pay less in a quiet week; above it rent is cheaper, because their extra takings are theirs to keep. The table shows both deals from half your typical week to one and a half times it.
For operators, the same table shows what each model brings in: commission rises with busy drivers, rent is steady whoever works. Many fleets offer both and let drivers choose. To see a driver’s whole week with fuel and insurance, use the taxi driver earnings calculator; for the paperwork, the taxi rental agreement template.
FAQ
Rent and commission questions
Is it better for a taxi driver to pay rent or commission?
It depends on weekly takings. Rent is better for a driver whose fares are usually above the break-even level (rent ÷ commission rate); commission is better for a driver whose fares are usually below it, or who wants protection in quiet weeks.
How do I calculate driver commission?
Multiply the driver's fares by the commission rate. On £900 of fares at 20% the commission is £180 and the driver keeps £720. Agree in writing whether commission applies to the whole fare or to the fare less extras such as airport charges.
What is a taxi settlement or radio rent?
It is the fixed weekly fee a driver pays an operator for the right to take its bookings, sometimes with the use of the car included. Unlike commission it does not change with how much the driver takes that week.
Can a fleet charge some drivers rent and others commission?
Yes; many do, and some combine a lower rent with a smaller commission. Dispatch software has to record which plan each driver is on so the weekly statement is right. TaxiDex supports commission and rent plans per driver.
Run rent and commission plans without spreadsheets
TaxiDex records each driver's plan, jobs and payments and produces the weekly settlement, so drivers see exactly what they owe or are owed.
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