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# Tiered Formula Calculation

I am having a hard time envisioning how to prepare a formula to calculate the net earnings for a tiered calculation. The revenue is 2.5% of the closed business. Then two separate sides split the 2.5% after an override takes place.

As a simple example, if someone closes \$2,000,000 in business. The revenue would be \$50,000 (\$2,000,000 X 2.5%). From this, there would be a split between two parties 50% and 50%.

The problem is we want to create a tiered schedule where the split changes as the closed business increases.

Below is the projected tier:

0-\$2,000,000 the person earns 50% of the commissions.

\$2,000,001-\$4,000,000 - person earns 60% of net commissions.

\$4,000,001 and up - person earns 70% of net commissions.

Any help on creating a spreadsheet where I can simply adjust the closed business to calculate the net revenue on the splits as it increases?

3 Replies

# Re: Tired Formula Calulation

=D4*VLOOKUP(D4,A4:B6,2,TRUE)/100*2.5%

Is this what you are looking for?

# Re: Tired Formula Calulation

Weird. When I do the real math I believe I get a revenue stream of \$107,500. I'm not sure what the delta is between your formula and my manual calculation.

# Re: Tired Formula Calulation

=IF(D4>4000000,(D4-4000000)*0.7+2000000*0.6+2000000*0.5,

IF(AND(D4<=4000000,D4>2000000),(D4-2000000)*0.6+(2000000)*0.5,

IF(D4<=2000000,D4*0.5)))*0.025

Unfortunately i didn't understand what you want to do. Above formula is what you are looking for i suppose.