# Revenue Share - Excel Question

#### bballfan23

##### New Member
Hi - I am trying to create a formula to determine revenue share for a company I work with.

The initial revenue share percentage is 5%. On a yearly basis, Company X will receive 5% of Company Y's revenue until a \$12 million cumulative number is hit. Once \$12 million is hit, the revenue share % would decrease to 3.5%.

If revenues were \$100 million, this target of \$12 million would be hit after Year 3. Is there a formula that can be written (perhaps a nested IF) to properly switch the calculation from 5% to 3.5% once the \$12 million is hit and not after the fact?

Thanks!

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Hi Ballfan,
You could use a formula like =IF(SUM(\$B\$6:B6)>=\$B\$4,B6*\$B\$3,B6*\$B\$2) in C6

In a Sheet like this
 Parameter Value Initial revenue share percentage 5.00% Second revenue share percentage 3.50% Cumulative revenue \$ 12,000,000 Year Revenue Share Year 1 \$ 4,000,000 \$ 200,000 <--C6 Year 2 \$ 4,000,000 \$ 200,000 Year 3 \$ 4,000,000 \$ 140,000 Year 4 \$ 4,000,000 \$ 140,000 Year 5 \$ 4,000,000 \$ 140,000 Year 6 \$ 4,000,000 \$ 140,000 Year 7 \$ 4,000,000 \$ 140,000 Year 8 \$ 4,000,000 \$ 140,000 Year 9 \$ 4,000,000 \$ 140,000 Year 10 \$ 4,000,000 \$ 140,000

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Cheers
Sergio

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