Profit Sharing Calculator

Profit Sharing Scenario Calculator

Below is a profit sharing calculator to help you determine pay raises and bonuses based on company performance, inflation and your Key Performance Indicators (KPI). Feel free to change the values highlighted in yellow and the results will display on the right.

Explainer:

Use this calculator as a guide to help you determine how your salary may be adjusted based upon company revenue + profit and your performance. Bonus payment is based upon revenue and profit differences from the previous year and the total shared amount is split proportionally among employees based on KPI. The percentage of revenue and profit that will be shared is calculated from the percent increase from the previous year (see reference charts). Your KPI rating percentage will be weighted on a bell curve against all other employees and adjusted on a monthly basis. You can see in the reference chart that the upper third of employees will have a KPI multiplier of 1 or higher and the lower third of employees will have a multiplier of approximately .25% or lower. On a quarterly basis, the company and your current numbers will be shared.

Salary Adjustment= (Base x CPI) + (Base x (Company Pay Increase x KPI))
Bonus= KPI Multiplier x (Revenue Share + Profit Share)/ #employees)
KPI= Key Performance Indicators
CPI= Consumer Price Index (Bureau of Labor and Statistics)