# Understanding Net Earning Of My Item

I have a product on Codecanyon which costs \$24. The Item has been sold 3 times and It shows only \$19.86 in Your Balance on the dashboard. I’m really not understanding how this earning reaches from \$72 to \$19.86. What algorithms envato uses to calculate the author profits?

It seems like you haven’t provided your tax information yet, check this out:

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Buyer fee: 20% off the top:
\$72 - \$14.4 = \$57.6

(Default) US Taxes + (exclusive) author fee = 30%+37.5% = 67.5%.
\$57.6 - \$38.88 = \$18.72

This Is how Envato is calculating your fees/tax liability. Since your balance is \$19.86 and not \$18.72, perhaps your taxes are less than 30%, or your author fee is less than 37.5%.

India has a US tax treaty of 15%, so you should be able to reduce your tax liability by submitting the proper forms. In this example, a 15% tax rate would increase your earnings to \$27.36

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You haven’t provide any tax information about you for Envato. Envato treat you now as an US Autor without any tax information = 28% Backup Withholding Tax on all your sales.

`Purchase Price: \$24.00`
`Buyer Fee: \$24.00 * 20% = \$4.80`
`Gross Income: \$24.00 - \$4.80 = \$19.20`
`US Backup Witholding Tax: \$19.20 * 28% = \$5.37`
`Author Fee: \$19.20 * 37.5% = \$7.20`
`Net Income: \$19,20 - \$5.37 - \$7.20 = \$6.62 (commercially rounded)`

`3 sales: \$6.62 * 3 = \$19.86`

You should send Envato your tax information (via account settings) in order to benefit from the tax treaty between your country and the United States

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