Plan math
A tiered commission formula
Attainment is what they sold divided by quota. A tiered plan pays one rate up to quota and a higher rate after it. Marginal pays the higher rate only on the dollars above the line. Retroactive pays the higher rate on the whole period once they cross it. Attainment squared is a curve, not a tier: 70% attainment pays 49%, 100% pays 100%, 130% pays 169%. The worked example below uses the same quota and the same bookings for all three.
One quota, three ways to pay it
Example only: quota is $100,000, bookings are $130,000, and variable target at 100% is $10,000. Attainment is 130%. These dollar amounts illustrate the rules; they are not a customer payout.
| Rule | What it pays on $130,000 booked against a $100,000 quota | Example payout if 100% pays $10,000 |
|---|---|---|
| Marginal, 8% up to quota and 12% after | 8% of the first $100,000 in bookings, then 12% of the next $30,000 in bookings. | $8,000 + $3,600 = $11,600 if the rates apply to bookings. Example only. |
| Retroactive, 12% once past quota | 12% of all $130,000 in bookings. | $15,600 if the rate applies to bookings. Example only. |
| Attainment squared | 130% × 130% = 169% of the target incentive. | $16,900. Example only; this is a percent of the $10,000 target incentive, not a percent of bookings. |
The marginal and retroactive rows are percentages of bookings. Attainment squared is a percentage of the target incentive, not a percentage of bookings. That difference is the point of the table.
What to put in the sheet
- Put attainment in one cell: sales divided by quota.
- Put the tier table in cells instead of nesting every band inside one formula.
- Apply the accelerator only to dollars above the line when the plan is marginal.
- Use attainment × attainment for the squared curve when that is the plan.
- Label which rule the plan uses before you compare the result with the statement.
What this page does not do
It does not decide a plan. It does not say CompDay runs attainment squared unless a plan is configured that way. The complexity checker scores whether a plan is hard to re-explain. This page is the formula.
Updated November 2026.