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Bonus calculation with certain criteria

  1. #1
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    Bonus calculation with certain criteria

    Hi,

    Please require help on this formula, new to the forum but the internet hasnt helped me find a solution or correct method.

    e.g.
    Person 1 has a salary of 10000, they generate revenue of 40000.
    Criteria 1: if they earn 2.5x or above the salary but less than 3x the salary they earn 20% of the difference
    Criteria 2: if they earn above 3x salary then 30% of difference in revenue and 3x salary.

    e.g. 10000 salary, 40000 revenue
    2.5x salary = 25000
    3x salary = 30000

    20% bonus is met as revenue exceeds 2.5x salary so = 5000 x 20% = 1000
    30% bonus is met as revenue exceeds 3x salary so = 10000 x 30% = 3000 (as previous bonus for previous criteria met for 2.5x)

    total bonus = 4000

    I need a formula that if the criteria is not met, then flags up as a 0, for instance if under the 2.5x revenue then no bonus, if met the 2,5x criteria but not the 3x criteria then only bonus for that, if met 2.5x and 3 x then bonus for both.

    I hope that makes sense!
    Last edited by mbeebash; 03-15-2015 at 07:47 PM.

  2. #2
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    Re: Bonus calculation with certain criteria

    See if this is what you want...
    A
    B
    C
    1
    salary Revenue
    2
    10000
    40000
    3000
    3
    10000
    30000
    1000
    4
    10000
    20000
    0

    C2=IF(B2>A2*3,(B2-(A2*3))*0.3,IF(B2>A2*2.5,(B2-(A2*2.5))*0.2,0))
    copied down
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    Re: Bonus calculation with certain criteria

    Hi Thank you. That formula works great.

    I only have one issue. The total difference of the 20% and 30% bonus needs to be added together as a total bonus. The end answer is showing just the 30% bonus.

    example 1 person salary is 10000, revenue is 40000, so bonus should be;

    2.5x = 25000 but less 30000 (3x salary) = 5000 x 20% = 1000
    3x = 30000 but less 40000 = 10000 x 30% = 3000

    total = 4000

    for some reason the formula doesnt take into account the 20% bonus and gives an answer of 3000

    example 2
    example person salary is 10000, revenue is 28000, so bonus should be;

    2.5x = 25000 but less 28000 (didnt make the 3x salary) = 3000 x 20% = 600
    3x = 30000 so its a zero as didnt make 3x salary

    total = 600 + 0 = 600 total bonus

    sorry of this is confusing. if you need me to further explain any area, let me know.

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    Re: Bonus calculation with certain criteria

    I only have one issue. The total difference of the 20% and 30% bonus needs to be added together as a total bonus. The end answer is showing just the 30% bonus.
    OK, I didnt catch that part...

    =IF(B2>A2*3,1000+(B2-(A2*3))*0.3,IF(B2>A2*2.5,(B2-(A2*2.5))*0.2,0))

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    Re: Bonus calculation with certain criteria

    Hi,

    Thank you.

    Im still getting answers that when worked out manually are correct but my spreadsheet doesnt calculate correctly.

    The 30% column is correct. But the 20% doesnt equate correctly. Can I email you the sheet.

  6. #6
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    Re: Bonus calculation with certain criteria

    Rather than email, can you give me a dummy workbook here with a few samples at each "range"?
    To attach a file to your post,
    click advanced (next to quick post),
    scroll down until you see "manage file",
    click that and select "add files" (top right corner).
    click "select files" find your file, click "open" click "upload" click 'done" bottom right. click "submit reply"

    Once the upload is completed the file name will appear below the input boxes in this window.
    You can then close the window to return to the new post screen.

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    Re: Bonus calculation with certain criteria

    Information only - not part of end calculation 20% 30%
    Salary Revenue 2015 2.5x Salary 3x Salary Total Bonus Correct answer
    30,000 150,000 75,000 90,000 15,000 18,000 33,000 21000 (3k + 18K)
    60,000 160,000 150,000 180,000 2,000 FALSE 2,000
    100,000 180,000 250,000 300,000 0 FALSE 0
    10,000 40,000 25,000 30,000 3,000 3,000 6,000 4000
    10,000 28,000 25,000 30,000 600 FALSE 600 600
    Attached Files Attached Files

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    Re: Bonus calculation with certain criteria

    I have added the spreadsheet, please see if that makes sense.

    Mainly the area is the calculation between 2.5x and 3x salary

    If the revenue is below the 3x salary and above 2x (the middle ground).

    e.g. revenue 28000, salary 10000 (2.5x = 3000 x 20% = 600 + 0 for 30% as 3x salary has not been met).
    e.g. revenue 40000, salary 10000 (2.5x = 5000 x 20% = 1000 + 10000 x 30% = 3000, so total bonus = 1000 + 3000 = 4000

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