Tiered Fee Formula Help

I'm trying to build on this concept and I think the additional variable is throwing me off.

http://www.excelforum.com/excel-form...mula-help.html

Originally Posted by Crooza

So the 7.5% only applies to the amount in excess of the 5x BUT you've applied the 5% to the entire 5x when you've said there is no fee for less than 4 so why isn't the 5% applied to only the portion between 4 and 5 which is the same logic you've sued for the portion between 5 and 5.4 !?

Sorry, you are correct, the 5% would be applied to only the portion between 4x-5x, then the excess, 0.4x would be multiplied by $1.2M then by 7%.

So if you had a 5.4x multiple, you would multiply 1.0x times $1.2M times 5% ($60,000) + 0.4 times $1.2M times 7.5% ($36,000) for a total fee of $96,000.

My apologies for the confusion.

I'm trying to build on this concept and I think the additional variable is throwing me off.

http://www.excelforum.com/excel-form...mula-help.html

Originally Posted by Crooza

Ok. I'm at kids soccer atm. Will come back and look later today

Much appreciated! I'll PM you the word for word verbiage so it provides enough color. Hope your kids win!