Binary MLM commission = the smaller leg’s volume (matched volume) x the pairing percentage, up to the cap. The extra volume on the bigger leg carries forward. Use the calculator below to test your own numbers.
This guide is for founders planning a binary plan. We are Coded Idea, an MLM software company in Mohali (Sector 127), near Chandigarh, with 100+ software projects delivered. Our binary MLM software runs this pairing logic with your own rules.
Binary pairing calculator
Enter figures from your own plan. These are example inputs, not our payout plan and not an income promise. Nothing is sent until you press a send button.
| Matched volume | 0 |
|---|---|
| Commission | 0 |
| Carry forward | 0 |
Change a figure to see the result.
How binary pairing works, step by step
- Two legs. Each member has a left and a right leg. New members are placed under one of them.
- Volume builds up. Product orders add business volume (BV) to the legs above.
- Match the smaller leg. The software pairs the volume that exists on both sides.
- Pay a percentage. A set percentage of matched volume becomes commission, subject to the cap.
- Carry forward. The unmatched volume stays on the stronger leg for the next cycle.
Worked example
| Left | Right | Matched | At 10% | Carry forward |
|---|---|---|---|---|
| 1,000 | 600 | 600 | 60 | 400 (left) |
| 400 + 300 new | 500 | 500 | 50 | 200 (left) |
The figures are illustrative only. Your percentage, ratio and cap come from your plan.
What good binary software must handle
- Cap and flush-out rules you can change in the admin panel, without code.
- Reversal of commission when an order is refunded or cancelled.
- A payout preview that shows the left, right, matched and carried volume per member.
- Ratios such as 2:1 or 1:2 for the first pair, if your plan uses them.
- KYC and payout reports for your accountant.
Compare plan types in binary vs unilevel MLM plan, check features with the MLM software features checklist, and see how to choose an MLM software company. For cost, see the MLM software price page. Before you pay, test the commission engine with our MLM software demo checklist. To see how e-pins, the e-wallet and withdrawals should be set up, read our MLM e-pin and wallet payout guide.
Legal note: a calculator does not make a plan lawful. Read our guide to the Direct Selling Rules 2021 and take legal advice.
Frequently asked questions
How is binary MLM commission calculated?
The software compares the business volume (BV or points) in the left and right legs. The smaller leg is the matched volume. A set percentage of the matched volume is paid, usually up to a daily or weekly cap. The unmatched volume stays on the stronger leg as carry forward.
What is carry forward in a binary plan?
Carry forward is the volume left on the stronger leg after matching. For example, with 1,000 on the left and 600 on the right, 600 is matched and 400 carries forward on the left to the next cycle.
Why do binary plans have a daily cap?
A cap limits the payout in one cycle so the company can predict its liability. The cap is a plan setting, so the software should let you change it without code changes.
Is this calculator my payout plan?
No. It shows the standard pairing logic with figures you enter. Your real plan may add ratios like 2:1, rank bonuses or flush-out rules. Coded Idea builds those rules into custom binary MLM software.
Can commission depend on product orders?
It should. Commission tied to recorded product orders is easier to audit and to reverse on a refund. Read our guide to the Direct Selling Rules 2021 and take legal advice on your plan.
How much does binary MLM software cost?
At Coded Idea, ready-to-launch MLM software starts from ₹15,000 and custom MLM software from ₹35,000. Final price depends on your plan rules, so share them for a quote.
Want this logic in your own software?
Send your pairing rules and we will tell you what we would build and what it costs. Local founders can also see MLM software development in Chandigarh, or the MLM software development service.