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​Short-Term Sales Incentive Payout Calculator 

• 70/30 Sales Incentive Calculator: Model Monthly Payouts

Posted by: Mansour Baker

We believe figuring out your commission should be fast and clear. This Short-Term Sales Incentive Calculator is modeled exactly on our 70/30 Pay Mix rules.

​Just enter your Annual Base Salary and performance score below. The calculator runs the numbers, accurately reflecting above the 80% threshold where earnings start and the 150% maximum cap. Run a quick simulation to see what you'll earn this month!

Short Term Sales Incentive Calculator

Short-Term Sales Incentive: Monthly Payout Simulation

Plan Framework

• Pay Mix: 70% Base / 30% Target Incentive
• Downside: 0% (Payout starts at above 80% achievement)
• Upside: 50% (Max payout of 150% TIE at 120% achievement)

Annual Base Salary ($)

Monthly Weighted Performance Achieved (%)

Your **combined monthly performance score**, calculated by summing the weighted achievement of all assigned targets (e.g., % Revenue, % Net Profit, Client Renewal #).

Calculate Monthly Payout

Payout Summary (Monthly)

Monthly Target Incentive Earning (MTIE) $0.00

Calculated Payout $0.00

Total Monthly Earnings (Base + Payout) $0.00

FAQs - Short Term Sales Incentive Calculator

About the Short-Term Sales Incentive Calculator

Q1. What is the purpose of this calculator?

• We built this calculator to help you quickly figure out your potential monthly incentive payout based on your Annual Base Salary and the performance score you achieved that month. It's a quick way to simulate your paycheck!

Q2. What specific plan parameters does this calculator use?
This calculator is specifically set up using the rules of our Short-Term Sales Incentive Plan:

• Pay Mix: It's a 70% Base Salary / 30% Target Incentive mix.
• Downside/Threshold: Payout begins only after you pass the 80% threshold. Achievement at 80% or below results in a $0 payout.
• Upside/Cap: The most you can earn is 150% of your Monthly Target Incentive Earning (MTIE), which you hit when you reach 120% achievement.

Understanding the Calculation

Q3. What is the Target Incentive Earning (TIE) and Monthly Target Incentive Earning (MTIE)?

• Your TIE is just your Annual Target Incentive Earning. Since we use a 70/30 pay mix, your TIE is 30% of your total target compensation.
  
  • The Math: Annual TIE = Base Salary × (30 / 70)
    
• Your MTIE is simply that Annual TIE divided by 12. This is the exact dollar amount you'd earn if you hit 100% of your monthly performance target.

Q4. How is the Payout calculated based on my performance achievement?
We use a simple, linear ramp to figure out what percentage of your MTIE you actually earn:

• At or Below 80% Achievement: Payout is $0. Payout only begins when achievement exceeds 80% (i.e., $80.1% and higher).
• 80% to 100% Achievement: The payout scales smoothly from 0% of MTIE (just above 80%) up to 100% of MTIE (at 100%)
• 100% to 120% Achievement: The payout continues to accelerate, scaling from 100% of MTIE (at 100%) up to the maximum of 150% of MTIE  (at 120%).
• Above 120% Achievement: Payout is capped at 150% of MTIE.

Q5. What does "Monthly Weighted Performance Achieved (%)" mean?
This is your single combined score after measuring your success against all of your monthly sales metrics. Think of it as your final grade for the month.

For example, if you have two metrics, and they are both weighted at 50% of your incentive:

• Metric A (110% X 0.50) + Metric B (90% X 0.50) = 55% + 45% = 100%

​​You must enter the final combined weighted percentage into the calculator.

Q6. Why is my Total Monthly Earnings higher than my Base Salary / 12?​
Your "Total Monthly Earnings" is simply the total cash you'll receive for the month. It includes:

1. Your Monthly Base Pay (your Annual Base Salary divided by 12).
2. Your Calculated Payout (the incentive you earned based on performance).

It's the sum of the two, giving you your total expected gross income for that period.

​Disclaimer: The short-term sales incentive payout calculator provides estimates only and is not financial, tax, or legal advice.

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