# Commission over 3month hurdle

##### New Member
Hi,
Is there a way of getting excel to work out monthly commission on the following basis:

Commission rates:
0 - 20,000 - 10%
20,001 - 40,000 - 15%
40,001 - 60,000 - 20%
60,001 - 25%

In any 3 months commission is paid monthly depending on sales per month over 3 months commision hurdle.
eg: Month 1 Sales of 15k is 15k@10%=1500 commission
Month 2 sales of 20k will have commision of 5k@10%(to reach 20k hurdle) and 15k@15% =total of 2750,
Month 3 sales﻿ of 10k will have commission of ﻿ 5k @15% (40k hurdle) & 5k at 20% total of 1750

Any help would be appreciated
Thanks

### Excel Facts

Which Excel functions can ignore hidden rows?
The SUBTOTAL and AGGREGATE functions ignore hidden rows. AGGREGATE can also exclude error cells and more.

#### rallcorn

##### Well-known Member
This is indeed possible - in past I had used the same for projecting employer payroll taxes based on when pay thresholds were reached. The formulas are too long to display in post, so I have a sample spreadsheet. If you'll send me a private message with your e-mail address, I'll send you the file.

#### mgirvin

##### Well-known Member
I am posting because I have a formula that I am not happy with. It is all that I could think up, but I am hoping someone else will see it and say, I can do better than that!

Here is the data and formula results (in green):
Excel Workbook
ABCDEFGH
1hurdleRate (used in formula)
2010.0%
320,00015.0%
440,00020.0%
560,00025.0%
6
7JanFebMarAprMayJunJul
8Sales (INPUT AMTS)15,000.0020,000.0010,000.0018,000.0010,000.00
9Formula 11,500.002,750.001,750.003,750.002,500.000.000.00
Commission
Excel 2010

Here is the formula that I put into B9 and copied to the side:

=IF(VLOOKUP(SUM(\$B8:B8),\$B\$2:\$B\$5,1)-SUM(A8:\$B8)<0,B8*VLOOKUP(SUM(\$B8:B8),\$B\$2:\$C\$5,2),(VLOOKUP(SUM(\$B8:B8),\$B\$2:\$B\$5,1)-SUM(A8:\$B8))*INDEX(\$C\$2:\$C\$5,MATCH(SUM(\$B8:B8),\$B\$2:\$B\$5)-1)+(SUM(\$B8:B8)-VLOOKUP(SUM(\$B8:B8),\$B\$2:\$B\$5,1))*INDEX(\$C\$2:\$C\$5,MATCH(SUM(\$B8:B8),\$B\$2:\$B\$5)))

or
Excel Workbook
B
91,500.00
Commission
Excel 2010
Cell Formulas
RangeFormula
B9=IF(VLOOKUP(SUM(\$B8:B8),\$B\$2:\$B\$5,1)-SUM(A8:\$B8)<0,B8*VLOOKUP(SUM(\$B8:B8),\$B\$2:\$C\$5,2),(VLOOKUP(SUM(\$B8:B8),\$B\$2:\$B\$5,1)-SUM(A8:\$B8))*INDEX(\$C\$2:\$C\$5,MATCH(SUM(\$B8:B8),\$B\$2:\$B\$5)-1)+(SUM(\$B8:B8)-VLOOKUP(SUM(\$B8:B8),\$B\$2:\$B\$5,1))*INDEX(\$C\$2:\$C\$5,MATCH(SUM(\$B8:B8),\$B\$2:\$B\$5)))

Any ideas?

#### Dave Patton

##### Well-known Member
try the following

=SUMPRODUCT((SUM(\$B\$9:B9)>\$B\$3:\$B\$6)*(SUM(\$B\$9:B9)-\$B\$3:\$B\$6)*(\$C\$3:\$C\$6-\$C\$2:\$C\$5))-SUM(\$A\$12:A12)

or naming the Brackets "B" and the range of rates "Rate"

=SUMPRODUCT((SUM(\$B\$9:B9)>B)*(SUM(\$B\$9:B9)-B)*(Rate-OFFSET(Rate,-1,0)))-SUM(\$A\$12:A12)

#### mgirvin

##### Well-known Member

Thanks Dave!

I can't get it to work. Can you show me how your data is set up?

#### Dave Patton

##### Well-known Member
My formula considers the example in post 3.

Make sure you don't have merged cells and ensure cells C2 and A12 are empty or have 0.

#### mgirvin

##### Well-known Member

Dave,

Why does C2 have to be zero? It should have 10% in it. Also, why cell A12? That cell is below any of the data or formulas?

#### Dave Patton

##### Well-known Member
Please review the ranges that I used in the formula. You can insert a new row 2 or edit the formula.

The first thing that I did was remove all merged cells. I didn't delete a row; consequently, the data ranges for my formula are a row lower than your data.

You can edit the range of the brackets/hurdles A3:A6 and the rates C3:C6.

I put the formula in B12; A12 must be blank or contain 0.

You can review the formula with Excel's Evaluate Formula.

Dave

#### West Man

##### Well-known Member
Mike, assuming the sales amout is in cell C10, try: =(C10*0.1)+MAX(0,(C10-20000)*0.05)+MAX(0,(C10-40000)*0.05)+MAX(0,(C10-60000)*0.05)

#### mgirvin

##### Well-known Member
Dear Dave,

Thanks! It works.

It was helpful to know that you had inserted a row and that you had placed your formula in cell B12. I kept trying to figure out how to relate your formula to the 'example in post 3'. I couldn't for the life of me figure why the formula was not including all the bracket values!

Your formula is quite elegant! And the concept is straight forward: calculate all the amounts based on differences and then subtract the cumulative amount from the previous commission amounts!

Thanks again!

Excel contains over 450 functions, with more added every year. That’s a huge number, so where should you start? Right here with this bundle.

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