The Hammer is
an illusion
When an auctioneer brings down the hammer at $1,000,000, the buyer pays significantly more, and the seller receives significantly less. The gap between those two numbers is the auction house's revenue.
The Buyer's Premium (BP)
The Buyer's Premium is an additional fee charged to the winning bidder, calculated as a percentage of the hammer price. It is not optional, and it is tiered.
| Hammer Price Threshold | Premium % |
|---|---|
| Up to $1,000,000 | 26% |
| $1,000,001 to $6,000,000 | 21% |
| Above $6,000,000 | 14.9% |
Worked Example
Hammer Price: $2,500,000
- First $1,000,000 @ 26% = $260,000
- Remaining $1,500,000 @ 21% = $315,000
Total Premium: $575,000
Final Price to Buyer: $3,075,000 (23% markup)
The Seller's Commission
Sellers are also charged a commission, though this is heavily negotiated. For low-value lots, it might be 10%. For high-value estates, the seller's commission is often waived entirely to win the consignment, with the auction house relying solely on the Buyer's Premium.
Calculate it yourself
Don't do the math in your head during a bidding war. Use our tool to calculate exact thresholds.
Launch CalculatorFrequently Asked Questions
- Are premiums negotiable?
- For the buyer, rarely. Unless you are buying tens of millions of dollars of art annually, the published rates apply. Sellers have much more leverage to negotiate their commissions.
- Do these figures include taxes?
- No. Sales tax, VAT, or Artist Resale Rights (Droit de Suite) are calculated on top of the final price (hammer + premium).