+ Reply to Thread
Results 1 to 8 of 8

Declining Commission Rate

  1. #1
    Registered User
    Join Date
    02-10-2011
    Location
    Canada
    MS-Off Ver
    Excel 2019 / MS365
    Posts
    55

    Declining Commission Rate

    I have the need to calculate a declining commission rate (or is it called regressive?). There is a base commission rate which is calculated on each sales dollar up to a target. Once the sales value exceeds the target, the commission rate begins declining. For each dollar over the target, there is a different rate applied. The total commission then is a cumulative sum of each of the commission values which have been calculated by the regressive rate.

    I have attached a workbook, which will better explain the process. In the workbook you will see a green colored data range, which is for design purposes only. I hope to use a formula or function which will calculate what I need, without having this range. The 'over target' column will not be static, as the 'over target' calculation will change with each record. The chart is not required, but is part of the draft workbook to verify that this is a non-linear result. The example section (yellow) is more of what I will need, with the ability to reference the base commission rate and the ability to change the sale and target values.
    Attached Files Attached Files

  2. #2
    Forum Expert
    Join Date
    12-14-2012
    Location
    London England
    MS-Off Ver
    MS 365 Office Suite.
    Posts
    8,448

    Re: Declining Commission Rate

    =if(a18<=b18,0,max(10-a18+b18,0)/100)


    or 10 + IF(A18<=B18,0,MAX(10-A18+B18,0)/100)
    My General Rules if you want my help. Not aimed at any person in particular:

    1. Please Make Requests not demands, none of us get paid here.

    2. Check back on your post regularly. I will not return to a post after 4 days.
    If it is not important to you then it definitely is not important to me.

  3. #3
    Registered User
    Join Date
    02-10-2011
    Location
    Canada
    MS-Off Ver
    Excel 2019 / MS365
    Posts
    55

    Re: Declining Commission Rate

    Thank you for your reply. Unfortunately, it does not satisfy my needs, due to the following requirements:
    1. The 'Over Target' list may grow upwards of target + 50, instead of the example of 10. It will not be a fixed number.
    2. The provided formula does not give me the cumulative total, which I hope to able to accomplish.
    By a cumulative total, and using over target + 5, the result should be the $100(target) + 0.09 + 0.08 + 0.07 + 0.06 + 0.05 = $100.35. I am hoping to have this in one cell, without the need of having an extensive table consisting of 50 +/- rows. Maybe there is an Excel statistical function that I do not know about.

  4. #4
    Forum Expert
    Join Date
    12-14-2012
    Location
    London England
    MS-Off Ver
    MS 365 Office Suite.
    Posts
    8,448

    Re: Declining Commission Rate

    Try this formula in row 18

    =0.1+IF((C18-D18)>8,0.35,(C18-D18)*(9+10-(C18-D18))/200)
    Last edited by mehmetcik; 11-07-2019 at 09:12 PM.

  5. #5
    Registered User
    Join Date
    02-10-2011
    Location
    Canada
    MS-Off Ver
    Excel 2019 / MS365
    Posts
    55

    Re: Declining Commission Rate

    I have re-posted the Excel workbook, with 3 example tables. Again, I'm hoping these are examples, and that there is a function / formula that will calculate them. But for example purposes, here are the tables.
    Attached Files Attached Files

  6. #6
    Forum Expert XLent's Avatar
    Join Date
    10-13-2010
    Location
    Northumberland, UK
    MS-Off Ver
    various
    Posts
    2,704

    Re: Declining Commission Rate

    Some of the examples are a little confusing; on Sheet 1 examples the commission is target*base% + incremental whereas on Table Examples you're adding the Target (100) + cumulative commission.

    Anyway, given potential no. of tiers, per sample tables, you would want to go down a SUMPRODUCT route I suspect as offers a lot of flexibility.

    Using scenario of 119 sale {Sheet1!A21}, 100 Target {Sheet1!B21}, and using marginal rate Table per G:K on Table Examples

    Formula: copy to clipboard
    Please Login or Register  to view this content.

    the above would return 10.95 rather than 100.95 as it's adding the incremental (0.95) to the Target @ Base value as opposed to just Target

  7. #7
    Registered User
    Join Date
    02-10-2011
    Location
    Canada
    MS-Off Ver
    Excel 2019 / MS365
    Posts
    55

    Re: Declining Commission Rate

    You are right - that was more confusing than it could have been. Sorry about interchanging my 100's and 10's. You were correct in your assumption - the Table Examples should have been Target (100 * 10%) + cumulative commission.
    I am grateful for your assistance, and risk sounding ungrateful as I push this a little further. I guess I was hoping that there might be an Excel function that would eliminate the need for a marginal rate table. The tables were shown as examples. As you can see, in one instance the rate regresses to zero at target +10, in another instance it is target + 20, and in another it is target + 30. I was hoping I was clear that those were given as examples, as the zero rate can be set to occur at any desired cap. Even if I acquiesce and use the marginal rate tables, it still seems that I am limited to using a set table length (in your example: target + 30).

  8. #8
    Forum Expert XLent's Avatar
    Join Date
    10-13-2010
    Location
    Northumberland, UK
    MS-Off Ver
    various
    Posts
    2,704

    Re: Declining Commission Rate

    So, if I've understood, the below would work but is over complicated, unfortunately I can't look at this currently to simplify but others will.

    Using same values as before only now the "cap" is entered into G21, so with 119 you'd get different results if you used 20, or 30... i.e .10.95 (20) or 11.27 (30)

    Formula: copy to clipboard
    Please Login or Register  to view this content.

+ Reply to Thread

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Similar Threads

  1. Trying to find commission rate using SUMIF
    By SuperWhistle in forum Excel General
    Replies: 1
    Last Post: 10-30-2016, 11:43 AM
  2. [SOLVED] Commission Calculator ( % to target with variable % pay rate)
    By firefuze in forum Excel Formulas & Functions
    Replies: 4
    Last Post: 09-19-2013, 06:06 PM
  3. Calculate increasing commission rate
    By Methost in forum Excel Formulas & Functions
    Replies: 3
    Last Post: 01-04-2013, 08:10 AM
  4. Tiered Commission - Flat Rate
    By rjhendrix in forum Excel Formulas & Functions
    Replies: 2
    Last Post: 09-20-2012, 08:38 PM
  5. Excel 2007 : Commission Rate from Multiple Criteria
    By angle in forum Excel General
    Replies: 5
    Last Post: 08-19-2009, 01:18 PM
  6. Replies: 4
    Last Post: 04-10-2006, 10:20 AM
  7. calculating commission payments using bands for % rate
    By jonathanscary in forum Excel Formulas & Functions
    Replies: 3
    Last Post: 02-03-2005, 05:17 PM

Tags for this Thread

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts

Search Engine Friendly URLs by vBSEO 3.6.0 RC 1