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How to calculate tiered commission in Excel and Google Sheets
Topic:Finance basicsExcel & Google Sheets
=IFS(B2>=10000, B2*0.1, B2>=5000, B2*0.07, TRUE, B2*0.05)Try it with your data
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Step by step
- 1List the tiers from highest threshold to lowest.
- 2Each pair is a condition and the commission for it.
- 3TRUE at the end applies the base rate to everything below the lowest tier.
Tips
- In older Excel without IFS, use nested IFs or a rate table with VLOOKUP(..., TRUE).
- A lookup table is easier to maintain than a long IFS when you have many tiers.
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Frequently asked
How do I handle many commission tiers cleanly?
Put the thresholds and rates in a small table and use VLOOKUP with approximate match (TRUE). It scales better than a long IFS.
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