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Sales bonus calculator
On a quota-based bonus plan, you earn a share of your target bonus equal to your quota attainment, usually starting at a floor such as 50% and capped at 100% until year end. Halfway through the year at 75% attainment, an $80,000 annual target has earned $30,000.
Formula
YTD quota = Annual quota × Quarters elapsed ÷ 4 Attainment = Sales YTD ÷ YTD quota Payout % = 0 below the floor; = attainment up to 100% Earned YTD = Annual target × Quarters elapsed ÷ 4 × Payout % This quarter = Earned YTD − Bonus already paid At year end + Over-goal rate × (Annual sales − Annual quota)
Example
Annual target $80,000. Annual quota $800,000. It's Q2, you've booked $300,000, and Q1 paid $12,000.
YTD quota is $400,000, so attainment is 75%. Earned YTD is $80,000 × 0.5 × 75% = $30,000. Q2 pays $30,000 − $12,000 = $18,000.
Why the floor matters so much
Below the floor you earn nothing for the period. Crossing it pays the floor percentage of your period target all at once. On a 50% floor, the deal that takes you from 49% to 50% of quota is often worth more than any other deal that quarter.
Common questions
What happens if I'm below 50% of quota?
On a plan with a 50% floor, that period pays $0. There is no partial credit below the floor, but because most of these plans are cumulative, a strong later quarter can catch you up.
Do I get paid more for beating quota mid-year?
Often not until year end. Many bonus plans cap in-year payouts at 100% of target and calculate any commission on revenue above quota only after the fiscal year closes, based on full-year results.
What if I was overpaid earlier in the year?
On cumulative plans, if your year-to-date earnings fall below what you've already been paid, the difference carries forward and is netted against future bonuses. You won't see another payout until earnings catch up.
Is going over quota always better?
Not always per dollar. Below quota, each dollar earns your target bonus divided by your quota. Above quota, it earns the over-goal rate. If the target is $80,000 on $800,000, that's 10¢ per dollar below quota; an 8% over-goal rate pays only 8¢.
How do upsells count toward quota?
On new business revenue plans, usually only the annualized increase counts. An account renewing at $300,000 that signs a $375,000 contract credits you $75,000.
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