Tiered Bonus & Commission in Excel

[jenni554]

Hi,
I need to calculate the bonus that will be applied in addition to the normal 3% commission. The tiers are:

35000-50000 3.5% (bonus is only on amount within 35-50k)
50000-75000 5.0%
75000-100000 10.0%
100000-125000 15.0%

I need to be able to say for example: 65000 commission would be a bonus of 1275.00. Total payout: 66275. What would be the best way to set up a formula for this?

 

[SpillerBD]

Could you run that calculation again and show the work.
I can't get to 1275.00 from you description.

 

[jenni554]

Could you run that calculation again and show the work.
I can't get to 1275.00 from you description.

50000-35000=15000
15000*3.5%= 525

65000-50000=10000
10000*5%=500

Total commission: $1025
Total Payout: $66025

My apologies! I was not correct in previous post! Thank you for pointing out.

 

[Eric W]

50000-35000=15000
15000*3.5%= 525

65000-50000=10000
10000*5%=500

Total commission: $1025
Total Payout: $66025

My apologies! I was not correct in previous post! Thank you for pointing out.

I think you had it right the first time. (See the line in red.) If so, you can try this formula:

	A	B	C	D	E
1	Amount	Bonus	Tier	Rate	Differential Rate
2	65000	1275	0	0%	0%
3			35000	3.50%	3.50%
4			50000	5.00%	1.50%
5			75000	10%	5%
6			100000	15%	5%

<colgroup><col style="width: 25pxpx"><col><col><col><col><col></colgroup><thead>
</thead><tbody>
</tbody>

Sheet7​

Worksheet Formulas Cell Formula B2 =SUMPRODUCT(--(A2>$C$2:$C$6),(A2-$C$2:$C$6),$E$2:$E$6) E2 =D2 E3 =D3-D2 <thead> </thead><tbody> </tbody>

<tbody>
</tbody>

Build a table like C1:E6. Put your rates in D, and put the formulas in E to create the differentials. Then the formula in B2 will give you your bonus.

Hope this helps!

 

[Dave Patton]

Excel 2010
	A	B	C	D	E	F
1	65000	1275		Brackets	Rate	rDiff
2				0	0.0%	0.00%
3				35000	3.5%	3.50%
4				50000	5.0%	1.50%
5				75000	10.0%	5.00%
6				100000	15.0%	5.00%
7
8	0	-	35000	0
9	35000	-	50000	525
10	50000	-	65000	750
11				1275
5a

Cell Formulas
Range	Formula
B1	=SUMPRODUCT(--(A1>Brackets),A1-Brackets,Diff)
F3	=E3-E2
D9	=(C9-A9)*E3
D10	=(C10-A10)*E4
D11	=D9+D10

Named Ranges
Name	Refers To	Cells
Brackets	='5a'!$D$2:$D$6
Diff	='5a'!$F$2:$F$6

 

[jenni554]

I think you had it right the first time. (See the line in red.) If so, you can try this formula:

	A	B	C	D	E
1	Amount	Bonus	Tier	Rate	Differential Rate
2	65000	1275	0	0%	0%
3			35000	3.50%	3.50%
4			50000	5.00%	1.50%
5			75000	10%	5%
6			100000	15%	5%

<tbody>
</tbody>

Sheet7​

Worksheet Formulas Cell Formula B2 =SUMPRODUCT(--(A2>$C$2:$C$6),(A2-$C$2:$C$6),$E$2:$E$6) E2 =D2 E3 =D3-D2 <tbody> </tbody>

<tbody>
</tbody>

Build a table like C1:E6. Put your rates in D, and put the formulas in E to create the differentials. Then the formula in B2 will give you your bonus.

Hope this helps!

That is perfect! Thank you so much!

 

[Eric W]

Glad we could help!

 

[snakel87]

I have a sales team that gets paid based on units sold not dollars sold and then a percentage for bonus. I'm trying to figure out a formula that would allow them to track sales and see potential commissions.
For basic math sake they need to sell 60 units a quarter.
They only get paid if they hit the 50% threshold (30 units) at $125 until 60 units. Everything after 60 units is $200 each with no cap.
I'm trying to find a formula that as they enter their weekly totals it calculates at the correct rate... is this even possible?

Thanks,

David

 

[Dave Patton]

Please show what you have tried.

Suggestions
- if formula
- logic formula
- above suggestion

If the person sells 500 units what will he be paid?

 

[Joe4]

I have a sales team that gets paid based on units sold not dollars sold and then a percentage for bonus. I'm trying to figure out a formula that would allow them to track sales and see potential commissions.
For basic math sake they need to sell 60 units a quarter.
They only get paid if they hit the 50% threshold (30 units) at $125 until 60 units. Everything after 60 units is $200 each with no cap.
I'm trying to find a formula that as they enter their weekly totals it calculates at the correct rate... is this even possible?

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