Short-term incentive calculator

This calculator is for STI-style plans where payout depends on weighted company, business-unit, or individual performance. It is a stronger fit than a generic annual bonus page when the plan uses scorecards and funding logic.

$15,375

Estimated short-term incentive payout

Weighted achievement: 102.5%

Use this when

Your plan uses weighted company and individual measures.
You searched for short-term incentive, STI, or STIP rather than “annual bonus”.
You need scorecard-style payout logic, not quota math.

How short-term incentive payouts usually work

Short-term incentive plans often combine more than one score. A common design is a company measure plus an individual or business-unit measure. The target payout is only the starting point.

Payout = target incentive × weighted achievement

Layer	Example	Why it matters
Company weighting	50%	Company performance can raise or lower the funding pool.
Individual weighting	50%	Strong personal performance matters only in proportion to its weight.
Modifier or cap	125% cap	Can limit upside even when achievement is above target.

Common short-term incentive mistakes

Assuming target equals payout.

Target is usually the reference point, not the promised result.

Ignoring the weighting split.

A 110% individual score does not matter much if its weight is small.

Missing plan modifiers.

Funding factors, gates, and caps often sit outside the simple weighted formula.

Short-term incentive FAQ

Is short-term incentive the same as STIP?

Often close enough for practical use. STI is the broad term for short-term incentive, while STIP is a common label for the annual plan structure that delivers it.

Why is the payout lower than target?

Because weighted company performance, team performance, individual performance, modifiers, and caps can all reduce the final payout.

Can short-term incentive pay exceed target?

Yes. Some plans allow over-target payouts when results beat plan and the plan has no hard cap at target.