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Commission formula

  1. #1
    brodiemac
    Guest

    Commission formula

    I have a bit of a quandry with this one. I have a spreadsheet I need to
    calculate commissions with. First the salespeople enter in how many sales
    they get each day which then totals at the bottom. The way it works for most
    of these sales is if they get between 1-4 sales, they will get $2 for each
    sale. Above and beyond 4, they get $5 for each sale. I have the forumla
    setup like this:

    =IF(B28<4,B28*2,6+(B28-3)*5) where B28 is the total number of units sold.

    The problem is I have one product where the commissions are on three tiers:

    1-5 units= $7
    6-10 units= $10
    11+ units= $13

    How would I calculate this?

  2. #2
    bpeltzer
    Guest

    RE: Commission formula

    I like to restructure the calculation as $7 per unit, PLUS $3 per unit ($10 -
    $7) above 5, PLUS $3 per unit ($13 - $10) above 10.
    Then the formula is =7*b28 + max(0,3*(b28-5)) + max(0,3*(b28-10)).
    Each MAX ensures that there's no penalty for not reaching that threshold.
    --Bruce

    "brodiemac" wrote:

    > I have a bit of a quandry with this one. I have a spreadsheet I need to
    > calculate commissions with. First the salespeople enter in how many sales
    > they get each day which then totals at the bottom. The way it works for most
    > of these sales is if they get between 1-4 sales, they will get $2 for each
    > sale. Above and beyond 4, they get $5 for each sale. I have the forumla
    > setup like this:
    >
    > =IF(B28<4,B28*2,6+(B28-3)*5) where B28 is the total number of units sold.
    >
    > The problem is I have one product where the commissions are on three tiers:
    >
    > 1-5 units= $7
    > 6-10 units= $10
    > 11+ units= $13
    >
    > How would I calculate this?


  3. #3
    Niek Otten
    Guest

    Re: Commission formula

    http://www.mcgimpsey.com/excel/variablerate.html

    --
    Kind regards,

    Niek Otten

    "brodiemac" <[email protected]> wrote in message
    news:[email protected]...
    >I have a bit of a quandry with this one. I have a spreadsheet I need to
    > calculate commissions with. First the salespeople enter in how many sales
    > they get each day which then totals at the bottom. The way it works for
    > most
    > of these sales is if they get between 1-4 sales, they will get $2 for each
    > sale. Above and beyond 4, they get $5 for each sale. I have the forumla
    > setup like this:
    >
    > =IF(B28<4,B28*2,6+(B28-3)*5) where B28 is the total number of units sold.
    >
    > The problem is I have one product where the commissions are on three
    > tiers:
    >
    > 1-5 units= $7
    > 6-10 units= $10
    > 11+ units= $13
    >
    > How would I calculate this?




  4. #4
    Roger Govier
    Guest

    Re: Commission formula

    Hi

    One way
    =A1*7+(MAX(0,A1-5)*3+(MAX(0,(A1-10)*3

    Your first formula expressed in the same way would be
    =A1*2+MAX(0,A1-4)*3

    The formula pays the base amount on all sales, then the incremental
    value on the sales above each incremental step.

    --
    Regards

    Roger Govier


    "brodiemac" <[email protected]> wrote in message
    news:[email protected]...
    >I have a bit of a quandry with this one. I have a spreadsheet I need
    >to
    > calculate commissions with. First the salespeople enter in how many
    > sales
    > they get each day which then totals at the bottom. The way it works
    > for most
    > of these sales is if they get between 1-4 sales, they will get $2 for
    > each
    > sale. Above and beyond 4, they get $5 for each sale. I have the
    > forumla
    > setup like this:
    >
    > =IF(B28<4,B28*2,6+(B28-3)*5) where B28 is the total number of units
    > sold.
    >
    > The problem is I have one product where the commissions are on three
    > tiers:
    >
    > 1-5 units= $7
    > 6-10 units= $10
    > 11+ units= $13
    >
    > How would I calculate this?




  5. #5
    Dana DeLouis
    Guest

    Re: Commission formula

    Another option:
    =MAX(7*A1,10*A1-15,13*A1-45)

    HTH :>)
    --
    Dana DeLouis
    Win XP & Office 2003


    "brodiemac" <[email protected]> wrote in message
    news:[email protected]...
    >I have a bit of a quandry with this one. I have a spreadsheet I need to
    > calculate commissions with. First the salespeople enter in how many sales
    > they get each day which then totals at the bottom. The way it works for
    > most
    > of these sales is if they get between 1-4 sales, they will get $2 for each
    > sale. Above and beyond 4, they get $5 for each sale. I have the forumla
    > setup like this:
    >
    > =IF(B28<4,B28*2,6+(B28-3)*5) where B28 is the total number of units sold.
    >
    > The problem is I have one product where the commissions are on three
    > tiers:
    >
    > 1-5 units= $7
    > 6-10 units= $10
    > 11+ units= $13
    >
    > How would I calculate this?




  6. #6
    brodiemac
    Guest

    Re: Commission formula

    So many answers so far. You are all great.

    I used the answer that Roger Govier gave since it worked the best for me.
    Thanks all!!!

    "Roger Govier" wrote:

    > Hi
    >
    > One way
    > =A1*7+(MAX(0,A1-5)*3+(MAX(0,(A1-10)*3
    >
    > Your first formula expressed in the same way would be
    > =A1*2+MAX(0,A1-4)*3
    >
    > The formula pays the base amount on all sales, then the incremental
    > value on the sales above each incremental step.
    >
    > --
    > Regards
    >
    > Roger Govier
    >
    >
    > "brodiemac" <[email protected]> wrote in message
    > news:[email protected]...
    > >I have a bit of a quandry with this one. I have a spreadsheet I need
    > >to
    > > calculate commissions with. First the salespeople enter in how many
    > > sales
    > > they get each day which then totals at the bottom. The way it works
    > > for most
    > > of these sales is if they get between 1-4 sales, they will get $2 for
    > > each
    > > sale. Above and beyond 4, they get $5 for each sale. I have the
    > > forumla
    > > setup like this:
    > >
    > > =IF(B28<4,B28*2,6+(B28-3)*5) where B28 is the total number of units
    > > sold.
    > >
    > > The problem is I have one product where the commissions are on three
    > > tiers:
    > >
    > > 1-5 units= $7
    > > 6-10 units= $10
    > > 11+ units= $13
    > >
    > > How would I calculate this?

    >
    >
    >


  7. #7
    Roger Govier
    Guest

    Re: Commission formula

    Hi

    Thanks for the feedback.
    My solution had some extraneous brackets included, and would have
    resulted in an error if used as posted. It should have read
    either =A1*7+(MAX(0,A1-5)*3)+(MAX(0,A1-10)*3)
    or more simply =A1*7+MAX(0,A1-5)*3+MAX(0,A1-10)*3
    Bruce's solution was identical to mine, but with the correct number of
    brackets.
    Dana also gave the correct result, and requires the fewest typing of
    brackets, which as you can see, I sometimes get wrong<bg>

    --
    Regards

    Roger Govier


    "Roger Govier" <[email protected]> wrote in message
    news:%[email protected]...
    > Hi
    >
    > One way
    > =A1*7+(MAX(0,A1-5)*3+(MAX(0,(A1-10)*3
    >
    > Your first formula expressed in the same way would be
    > =A1*2+MAX(0,A1-4)*3
    >
    > The formula pays the base amount on all sales, then the incremental
    > value on the sales above each incremental step.
    >
    > --
    > Regards
    >
    > Roger Govier
    >
    >
    > "brodiemac" <[email protected]> wrote in message
    > news:[email protected]...
    >>I have a bit of a quandry with this one. I have a spreadsheet I need
    >>to
    >> calculate commissions with. First the salespeople enter in how many
    >> sales
    >> they get each day which then totals at the bottom. The way it works
    >> for most
    >> of these sales is if they get between 1-4 sales, they will get $2 for
    >> each
    >> sale. Above and beyond 4, they get $5 for each sale. I have the
    >> forumla
    >> setup like this:
    >>
    >> =IF(B28<4,B28*2,6+(B28-3)*5) where B28 is the total number of units
    >> sold.
    >>
    >> The problem is I have one product where the commissions are on three
    >> tiers:
    >>
    >> 1-5 units= $7
    >> 6-10 units= $10
    >> 11+ units= $13
    >>
    >> How would I calculate this?

    >
    >




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