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Formula to calculate royalty as sales level changes

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    Formula to calculate royalty as sales level changes

    Hi,

    Sorry I couldnt think of the best way to title this!

    So I am looking for some help with creating a spreadsheet where I can manually change sales level thresholds and royalty rates which will in turn automatically update.

    Company A pays a royalty to Company B at a royalty rate based on sales levels. So on the spreadsheet it's the first 16,000,000 at 3%, the next 5,999,999 at 4%, the next 9,999,999 at 5% and so on. I need to figure out the way to link this so that I can check the royalty due based on several different varying factors;

    Change of threshold level
    Change of royalty rate
    Change of NET sales

    So based on the spreadsheet and NET sales of 49,000,000, the royalty threshold goes into the 8% bracket. However if I wanted to change the sales thresholds to say go up in 10m increments then right now I would need to manually come into this and change the formulas. Ideally I would change the "to" cells and that would automatically update the sales level at which royalty is due. As you can see if I was to do that currently there would be a -1,000,000 in cell D7 but I would like it to show a 0 and in D6 show 9,000,000 due at 7%.

    Does anyone know what formula I would need to put into Column D to try to make this work?

    Thanks for any help in advance, and very sorry I probably havent explained this very well!

    Steve
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    Forum Moderator Glenn Kennedy's Avatar
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    Re: Formula to calculate royalty as sales level changes

    The way you had it set out... no discount was due between 16,000,000 and 16,000,001

    =SUMPRODUCT(--(C12>A2:A9),--(C12-A2:A9),--(B2:B9))

    See sheet. Column B is the increase in discount from the previous tier.

    Is this what you had wnated?
    Attached Files Attached Files
    Glenn




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    Re: Formula to calculate royalty as sales level changes

    Hi, yes this has worked perfectly, thanks so much!

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    Forum Moderator Glenn Kennedy's Avatar
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    Re: Formula to calculate royalty as sales level changes

    You're welcome.



    If that takes care of your original question, please select "Thread Tools" from the menu link above and mark this thread as SOLVED.

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