Written and reviewed by FormulaCraft Team. Each formula on this page is run through our verification engine before publishing.
Last reviewed:
How to calculate a performance bonus in Excel and Google Sheets
Excel & Google Sheets
=A2*IF(B2>="Excellent",0.15,IF(B2="Good",0.1,IF(B2="Meets Expectations",0.05,0)))✓
Verified example
Computed by a real spreadsheet engine on the sample data below.
| Base Salary | Rating | Bonus |
| 80000 | Excellent | |
| 60000 | Good | |
| 55000 | Meets Expectations | |
| 45000 | Below Expectations |
=A2*IF(B2>="Excellent",0.15,IF(B2="Good",0.1,IF(B2="Meets Expectations",0.05,0)))→12000
Try it with your data
Edit the grid or formula, then run it through a real spreadsheet engine — no signup.
Sample data — click any cell to edit
Runs server-side · free · no signup
Step by step
- 1Column A = Base Salary, Column B = Performance Rating (text: Excellent, Good, Meets Expectations, Below Expectations).
- 2In C2 enter: =A2*IF(B2="Excellent",0.15,IF(B2="Good",0.1,IF(B2="Meets Expectations",0.05,0)))
- 3Adjust the percentages (0.15, 0.1, 0.05) to match your company's bonus policy.
- 4For numeric ratings (1–5), replace text comparisons with >=4, >=3, etc.
Tips
- For cleaner formulas, store the bonus tiers in a lookup table and use VLOOKUP or XLOOKUP instead of nested IFs — much easier to maintain when tiers change.
Need it for your exact data?
Describe your columns in plain English and get the precise formula for your sheet, with the right Excel or Sheets syntax.
Frequently asked
How do I calculate bonus on target earnings rather than base salary?
Replace A2 with the target earnings cell. The rest of the formula stays the same.
Can I cap the bonus at a maximum amount?
Yes — wrap the formula with MIN: =MIN(50000, A2*IF(B2="Excellent",0.15,…)).