Calculate Sales Commission With Vlookup Sale Amount Tiers

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Learn how to calculate commissions for a basic tiered plan and rate table using the VLOOKUP function.

This tables shows a simple commission plan with a rate table that lists the payout rate at each level of sales.

Using the Vlooup function, set the match type to TRUE (you can even leave this out if you want by closing the bracket declaring the column index number).

Setting the match type to TRUE, vlookup will find the closest match to the lookup value that is less than or equal to the lookup amount. This basically allows us to find a value between ranges of two numbers (tiers).

Formula:*

=VLOOKUP(80000, A2:B13, 2, TRUE)
' or
=VLOOKUP(80000, A2:B13, 2)
  A B C
1 Sales % Commission Sales Tiers
2 $- 0% $0 – $49,999
3 $50,000.00 10% $50,000 – $99,999
4 $100,000.00 15% $100,000 – $149,999
5 $150,000.00 20% $150,000 – $199,999
6 $200,000.00 25% $200,000 – $249,999
7 $250,000.00 30% $250,000 – $299,999
8 $300,000.00 35% $300,000 – $349,999
9 $350,000.00 40% $350,000 – $399,999
10 $400,000.00 45% $400,000 – $449,999
11 $450,000.00 50% $450,000 – $499,999
12 $500,000.00 55% $500,000 – $549,999
13 $550,000.00 60% $550,000 and over

Results:

Corey Ander
Sales: $100,000
Bonus: 15%”

Sue Flay
Sales: $106,000
Bonus: 15%”

Patty O’Ferncher
Sales: $200,500
Bonus: 25%”

Robin Banks
Sales: $156,000
Bonus: 20%”

Lon Moore
Sales: $45,000
Bonus: 0%”

Rose Bush
Sales: $399,999
Bonus: 40%

Tags: accounting, lookup-reference

Categories: formulas

Updated: October 08, 2018

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