BonusPayCalc
Target payout mechanics

Bonus Payout Calculator

Estimate gross payout using your plan’s threshold, target and stretch curve, or enter a known payout factor. Choose the cap basis explicitly.

Bonus multiplier calculatorGross bonus pay

Last reviewed 10 September 2026

Calculate your payout

Estimated gross bonus payout
—

How this payout curve works

Curve mode pays zero below your threshold, the entered threshold payout at the threshold, 100% at target attainment, and the stretch payout at or above stretch. Between those points, it interpolates linearly. Manual mode uses your company payout factor directly.

Raw payout = salary × target % × payout factor × individual factor × eligibility

The cap is applied last. Choose explicitly whether its base is the full-period target or the prorated target. A cap of zero means zero payable bonus on this tool. Use a sufficiently high cap for a plan without a binding cap.

Related tools and next steps

Bonus multiplier calculator
Solve multiplier or final payout.
STIP calculator
Scorecard based incentive payout.
Annual bonus calculator
Annual target bonus payout.

What the curve looks like

A $20,000 target bonus on a plan paying nothing below 90% of goal, 50% of target at threshold, 100% at target, and 200% at 120% or above.

89% of goal
Nil
90% (threshold)
$10,000
100% (target)
$20,000
110%
$30,000
120%+ (cap)
$40,000
The threshold cliff is worth $10,000 for a one-percent difference in results.
The cliff at threshold is the most important number in the plan. Moving from 89% to 90% of goal is worth $10,000. Moving from 100% to 110% is worth the same $10,000 for ten times the extra performance. If you are near threshold in the final quarter, that is where the entire economic value of your effort sits.

The order operations are applied in

1
Funding gate. If company results miss the funding threshold, the pool is zero and nothing below matters.
2
Payout factor from the curve. Your result converted to a percentage of target.
3
Individual modifier. Applied as a multiplier or as a weighted component, depending on plan design.
4
Eligibility and proration. Partial years scale everything down.
5
Cap. Applied last in this tool, against the selected full-period or prorated target.

Read the payout curve guide, or use the STIP calculator for scorecard plans and the multiplier calculator to work backwards from a payslip.

Bonus payout questions

What is a bonus payout calculator?

It estimates the final payout from a target bonus, performance multiplier, company factor, proration and payout cap.

How is this different from bonus pay?

Bonus pay is usually salary times a percentage. Bonus payout handles plan mechanics such as multipliers, caps and eligibility.

Does this calculate tax?

No. It estimates gross payout before payroll deductions.

What is the difference between threshold, target and stretch?

Threshold is the minimum result at which any bonus pays, commonly 80-90% of goal, and below it the payout is zero rather than reduced. Target is the expected result and pays 100% of the target bonus. Stretch is the maximum recognised result, often 120% of goal, paying the capped maximum of 150-200%.

How is a bonus payout calculated?

Target bonus multiplied by the payout factor from the plan curve, then by any individual modifier and eligibility fraction, with the cap applied last. The payout factor is what the curve converts your result into.

What happens if I miss the threshold?

Nothing pays for that component. A threshold is a cliff, not a slope - missing it by one percent produces the same result as missing it by twenty.

What is a typical bonus cap?

This tool applies the cap after the entered factors, using the cap basis selected above. Your plan may specify a different sequence or payout curve.

Is the payout curve always linear?

This tool applies the cap after the entered factors, using the cap basis selected above. Your plan may specify a different sequence or payout curve.

Reviewed 20 August 2026 by the BonusPayCalc editorial team. Gross planning estimates only — not payroll, tax, legal or HR advice. See methodology for how formulas are chosen, or report a correction.