Formula for tiered commission on different quantity/price levels

Mak1

New Member
Joined
Mar 18, 2022
Messages
15
Office Version
  1. 365
Platform
  1. Windows
Hi hope this makes sense.....

I need to work out commission on (1) quantity of product and (2) its sale price.

I would appreciate some suggestions and help on the 2 points below:

  • The commission is 50% for any sales of products equal to or above £5 value and decreases by 0.1% for every penny less than £5.
    The formula I have for this so far :
    =((0.5-(5-C19)*0.1)*C19) where C19 is the sales price.

    Can this be simplified or tidied up? Also how do I include it allow a sales price over £5 to stick at 50% commission?

  • The above formula is for the first 5000 units. Thereafter every 1000 units sold the commission amount (result of formula from point above) is decreased/discounted by 1%.

    What would the formula be, if the number of units sold is E19 and I wanted to show the total commission in F19?

    For e.g.
    A) If 7000 units were sold at £6.00, commission would be as follows:
    1) 50% for the first 5000 units ( £3 x 5000 ) = £3000
    2) (50% for the units 5001 to 6000 ; £3 x 1000) with a 1% discount = £2970
    3) (50% for the units 6001 to 7000 ; £3 x 1000) with a 2% discount = £2940

    TOTAL £8910

    B) If 7000 units were sold at £0.60, commission would be as follows:
    1) 6% for the first 5000 units ( £0.036 x 5000 ) = £180
    2) (6% for the units 5001 to 6000 ; £0.036 x 1000) with a 1% discount = £35.64
    3) (6% for the units 6001 to 7000 ; £0.036 x 1000) with a 2% discount = £35.28

    TOTAL £250.92


    Should you have any questions please let me know.
 
I was surprised at the complexity of the plan, with a baseline commission rate dependent on sales price, a commission factor dependent on sales volume, and a tiered structure for sales volume. All of those ultimately lead to more tangible commissions per units sold, but a lot of tedious math is involved. ;)
 
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Excel Facts

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Use a custom number format of #,##0,K. Each comma after the final 0 will divide the displayed number by another thousand

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