# Calculate tiered and minimum premiums

Lesson 2 of [Compare auction terms before you bid](https://auctionfinder.fyi/academy/compare-auction-terms-before-you-bid.md), 16 minutes.

Many large houses do not charge one flat rate. They charge a higher rate on the first part of the hammer price and lower rates on the parts above it. Each rate applies only to its own band. A worked tiered example This schedule is an example, not the schedule of any house: - 25% on the first 10,000…

The rest of this lesson is for learners enrolled in the course. [See how Compare auction terms before you bid works](https://auctionfinder.fyi/academy/compare-auction-terms-before-you-bid.md).

Also on the [web page](https://auctionfinder.fyi/academy/compare-auction-terms-before-you-bid/calculate-tiered-and-minimum-premiums).

> Beware of auction fraud and shill bidding: never wire money or pay by gift card to a seller you cannot verify, and walk away when a price is run up by a bidder who never buys.