Buying at auction usually costs more than the winning bid alone. Buyer’s premium, VAT, online bidding charges, shipping and collection costs can all increase the final amount you pay.
Use this free Auction Buying Fees Calculator to estimate the total cost of an auction purchase before you bid. Enter the hammer price and the charges shown in the auction house’s conditions of sale to get a clearer idea of your likely overall cost.
Auction fees and VAT treatment can vary between auction houses and individual lots, so always check the catalogue and conditions of sale before bidding.
Calculate the Total Cost of an Auction Purchase
Estimate the amount you may actually pay after auction fees and additional costs.
| Item | Hammer Price (£) | Buyer’s Premium (%) | VAT on Premium (%) | VAT on Hammer (%) | Other Fees (£) | Shipping (£) | Remove |
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Field Descriptions
Item Name
Enter a short description of the item you are buying, for example “Victorian mahogany cabinet” or “Pair of dining chairs”. This is useful when calculating several purchases from the same auction.
Hammer Price (£)
The hammer price is the winning bid accepted by the auctioneer. It does not normally include the buyer’s premium, VAT, delivery or other auction charges.
Buyer’s Premium (%)
The buyer’s premium is the percentage charged by the auction house on top of the hammer price. Enter the rate shown in the auction catalogue or conditions of sale.
For example, a 25% buyer’s premium on a £500 hammer price would add £125 before any applicable VAT.
VAT on Buyer’s Premium (%)
Enter the VAT rate charged on the buyer’s premium. In the UK this is commonly 20%, but always check the auction house’s current terms.
This field applies VAT to the buyer’s premium only — not automatically to the hammer price.
VAT on Hammer Price (%)
Enter a VAT rate here only if the catalogue or auction house states that VAT applies to the hammer price of the particular lot.
If VAT does not apply to the hammer price, leave this field at 0%.
Other Fees (£)
Use this field for any additional fixed costs that are not included in the buyer’s premium or shipping. These might include online bidding fees, handling charges, packing fees or other auction-specific charges.
Shipping / Delivery (£)
Enter the expected cost of postage, courier delivery, van hire or other transport required to get the item from the auction house to you.
For larger furniture, transport can make a significant difference to the true cost of an auction purchase, so it is worth allowing for this before deciding how much to bid.
Calculate Total
After adding one or more purchases, select Calculate Total to see a breakdown of the hammer price, buyer’s premium, VAT, other fees, shipping and the estimated overall amount payable.
Print Summary
Select Print Summary to print or save a record of the calculated auction purchases and estimated total costs.
Important: Auction charges and VAT treatment vary between auction houses and individual lots. Always check the catalogue, lot description and conditions of sale before bidding.
What Costs Should I Allow for When Buying at Auction?
The hammer price is only the starting point when calculating the true cost of an auction purchase. Depending on the auction house and the individual lot, several additional charges may apply.
Buyer’s Premium
Most auction houses charge the successful bidder a buyer’s premium in addition to the hammer price. This is normally calculated as a percentage of the winning bid.
For example, a 25% buyer’s premium on a £500 hammer price would add £125 before any applicable VAT.
VAT
VAT may apply to the buyer’s premium and, for some lots, to the hammer price or other charges. The VAT treatment can vary depending on the auction house, the type of item and the terms applying to the particular lot.
Always check the auction catalogue and conditions of sale rather than assuming that the same VAT treatment applies to every lot.
Online Bidding Fees
Some auction houses or online bidding platforms charge an additional fee for bids placed through the internet. This may be a percentage of the hammer price or another stated charge.
Packing and Shipping
Smaller items such as ceramics, glass, artwork and collectables may require professional packing and postage. These costs can vary considerably depending on the size, weight and fragility of the item.
Collection and Transport
Furniture and larger items may require a van, courier or specialist furniture delivery service. Transport costs are worth considering before bidding, particularly when buying from an auction some distance away.
Other Auction Charges
Depending on the auction house or lot, there may also be handling charges, storage fees, lotting-related costs or other additional fees. Certain qualifying works of art may also attract Artist’s Resale Right.
Tip: Work out the total amount you are comfortable spending before the auction starts. This helps prevent buyer’s premium and other charges from pushing the final cost beyond your intended budget.
Example Auction Purchase
Suppose an antique cabinet sells for a £500 hammer price and the auction house charges a 25% buyer’s premium.
Step 1 — Hammer Price
The hammer price is the winning bid:
£500
Step 2 — Buyer’s Premium
A 25% buyer’s premium on a £500 hammer price would be:
£500 × 25% = £125
Step 3 — VAT on the Buyer’s Premium
If 20% VAT applies to the buyer’s premium, the VAT would be:
£125 × 20% = £25
Step 4 — Estimated Cost Before Delivery or Other Charges
The estimated total at this stage would therefore be:
£500 hammer price + £125 buyer’s premium + £25 VAT = £650
If the lot also attracts VAT on the hammer price, online bidding fees, packing, shipping or collection costs, these would need to be added separately.
This is why a winning bid of £500 does not necessarily mean the item will cost you £500.
Tip: If you know the maximum total amount you are prepared to spend, use our Maximum Auction Bid Calculator to work backwards and estimate a sensible bidding limit before the auction begins.
Auction Buying Fees – Frequently Asked Questions
What is a buyer’s premium?
A buyer’s premium is a fee charged by the auction house to the successful bidder. It is usually calculated as a percentage of the hammer price and added on top of the winning bid.
Is the hammer price the amount I actually pay?
Usually not. The hammer price is the winning bid accepted by the auctioneer. Buyer’s premium, applicable VAT, online bidding fees, shipping, delivery and other charges may then be added.
Do all auction houses charge the same buyer’s premium?
No. Buyer’s premium rates and fee structures vary between auction houses, and some may also charge additional online bidding or handling fees. Always check the conditions of sale before bidding.
Is VAT always added to the hammer price?
No. VAT treatment varies depending on the auction house, the type of lot and the terms applying to the sale. VAT may apply to the buyer’s premium, the hammer price, other charges, or a combination of these.
Check the individual lot description and auction house conditions rather than assuming the same VAT treatment applies to every item.
Are online bidding fees included in the buyer’s premium?
Not always. Some auction houses include online bidding within their standard charges, while others add a separate percentage or platform fee for bids placed online.
Should I include delivery or collection costs when deciding how much to bid?
Yes. Transport can make a significant difference to the true cost of furniture, artwork and larger items. Before bidding, consider courier charges, van hire, fuel, packing or specialist delivery costs where relevant.
What happens if I buy more than one item at the same auction?
You can add multiple purchases to our Auction Buying Fees Calculator and calculate an estimated combined total. This can be useful when buying several lots and trying to keep within an overall budget.
How can I work out the maximum amount I should bid?
If you know the maximum total amount you are prepared to spend, use our Maximum Auction Bid Calculator to work backwards from your budget and estimate a sensible hammer-price limit.
How can I check whether an antique is worth bidding on?
Research similar sold examples before bidding rather than relying only on asking prices. Our Antique Price Finder can help you compare previous sale results as part of your research.
Remember: auction estimates, buyer’s premiums, VAT treatment and additional charges can vary significantly, so always check the auction house’s current terms for the individual sale and lot.
Related Tools
If you are buying or selling at auction, these free Holytown Antiques tools may also be useful.
Maximum Auction Bid Calculator
Know the most you are prepared to spend in total? Work backwards from your budget to estimate a sensible maximum hammer-price limit after buyer’s premium, VAT and other costs.
Antique Price Finder
Research previous antique and collectable sale results and compare similar items before deciding how much you are prepared to bid.
Auction Selling Fees Calculator
Estimate seller’s commission, VAT and other deductions to see approximately how much you may receive when consigning an item to auction.
Browse Holytown Antiques
Browse our current selection of antique, vintage and distinctive pre-owned furniture, artwork, mirrors, glass, ceramics and decorative pieces.
Important Information
The Auction Buying Fees Calculator is provided as a general guide to help estimate the possible total cost of an auction purchase.
Buyer’s premium rates, VAT treatment, online bidding charges, packing, shipping, storage, handling and other fees can vary between auction houses, sales and individual lots.
The calculator does not replace the auction house’s catalogue, invoice or conditions of sale. Always check the current terms for the specific auction and lot before placing a bid.
Holytown Antiques cannot guarantee that the calculated amount will exactly match the final amount charged by an auction house.
Please note: Information provided through this page is for general research and planning purposes only and should not be treated as financial, tax or legal advice.