Performance Bonus Tier Calculator

How it is calculated

The tool looks up one bonus rate from a fixed table using the percentage of goal achieved, then applies that single rate to the whole base amount: bonus = base × rate ÷ 100 and total = base + bonus. The table is: under 80% gives 0%; 80 to under 90 gives 5%; 90 to under 100 gives 10%; 100 to under 110 gives 15%; 110 to under 125 gives 20%; 125 and above gives 30%. A tier starts exactly at its lower bound, so 100 gets 15% but 99.99 gets 10%. The rate is not split across bands. Achievement is a plain percentage figure (104, not 1.04) from 0 to 500; a negative value or one above 500 shows no result. Base can be any pay amount of zero or more that you want the percentage applied to. Plans at your employer will use their own thresholds and rates.

Common mistakes

• Typing achievement as a fraction such as 1.04 instead of 104. 1.04 is far below 80, so the tool applies a 0.00% rate and shows a bonus of $0.00.
• Expecting a marginal calculation, where only the part of achievement above each threshold earns the higher rate. Here the single tier rate applies to the entire base, so crossing 100% raises the bonus in one jump.
• Being a fraction of a point short of a threshold. 99.9% pays 10%, while 100% pays 15%, a difference of $3,000.00 on a 60000 base.
• Entering a monthly salary when the plan pays on annual pay, or the reverse. The bonus comes out in the same period as the base you typed.
• Assuming a cap above 125%. Everything from 125% upward pays the same 30%, so 140% earns no more than 125%.