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Capped Exponential Bonus Formula

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    Question Capped Exponential Bonus Formula

    Hi All,

    I am trying to come up with a formula for a bonus plan. Here are the details:

    The bonus is capped, for instance, at $100,000.
    There are revenue tiers, $1m - $15m at $1m increments.
    The formula should take into account that we would like the higher revenue numbers to produce more bonus - but not use any arbitrary numbers, strictly based on the formula.
    And should be easy to manipulate if you want to change the bonus cap, or the revenue scale.

    I'm not sure something like this even exists, but any help would be much appreciated!

    Thank you.

    Peter

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    Re: Capped Exponential Bonus Formula

    ..........
    Entia non sunt multiplicanda sine necessitate

  3. #3
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    Re: Capped Exponential Bonus Formula

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    Re: Capped Exponential Bonus Formula

    Hi SNG, thanks for the input. One minor change, I meant that the capped bonus at $100,000 would be the overall bonus, not the most a single payout would be. I also am a little unsure as to how to input the data you provided into that specific cells.

    Thanks again!

  5. #5
    Forum Expert shg's Avatar
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    Re: Capped Exponential Bonus Formula

    The 100K is the total bonus. To get the incremental bonus from one tier to the next, subtract the lower-tier value from the next tier.

    I also am a little unsure as to how to input the data
    See attached.
    Attached Files Attached Files
    Last edited by shg; 12-24-2012 at 11:17 AM.

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    Re: Capped Exponential Bonus Formula

    Wow...this looked complicated. I'm not sure how it all works, but I see I can manipulate the data in a way that makes sense.

    Thank you very much!!

  7. #7
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    Re: Capped Exponential Bonus Formula

    You're welcome.

  8. #8
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    Re: Capped Exponential Bonus Formula

    if employment revenue is more than the capped amount...Default to capped amount. if the Employment revenue is less than capped amount default to the capped amount

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