STIP Calculator for STI and Short Term Incentive Payouts
Calculate a STIP or STI payout from target bonus, weighted performance, company multiplier, individual score, eligibility and payout cap. Use this when the plan is scorecard based, not just salary times a bonus percentage.
Educational estimate only. This is not payroll, tax, legal or HR advice.
Scorecard logic
A serious STIP calculator has to show the scorecard. The safest default is salary times target bonus, then multiply by company, team, individual and eligibility factors.
| Performance level | Typical multiplier | Meaning |
|---|---|---|
| Threshold | 50% | Minimum payout level once plan goals are reached. |
| Target | 100% | Expected payout when plan goals are met. |
| Stretch | 125% to 200% | Higher payout for overachievement, often capped. |
STIP, STI and short term incentive wording
Searchers use all three labels. The calculation is usually the same: a short term incentive tied to a performance period, target payout and scorecard.
When not to use this page
If your plan is just salary times a fixed percentage, use the gross bonus pay calculator. If the question is payroll withholding, this site only gives gross planning estimates.
Related tools and next steps
FAQ
Is STIP the same as STI?
In many companies STIP and STI both mean short term incentive plan. This page uses both terms so the calculator matches either wording.
What inputs matter most in a STIP calculation?
The core inputs are target bonus, company multiplier, team or business unit score, individual score, eligibility and any payout cap.
Why can my STIP payout be lower than target?
A payout can be lower because company performance missed threshold, individual score was below target, eligibility was partial, or the plan has a cap or modifier.
Worked example: a $90,000 salary with a 15% target STIP
Take a $90,000 base salary with a 15% target bonus. The target payout is $13,500. Apply a 110% company multiplier, a 95% team score and a 100% individual score, at full (100%) eligibility. The scorecard payout is 13,500 × 1.10 × 0.95 × 1.00 × 1.00 = $14,107, well under the 200% cap of $27,000.
Educational gross estimate only — not payroll, tax or HR advice.
STIP and STI calculation questions
What is the STIP formula?
Salary × target bonus % gives the target payout, then you multiply by company, team and individual performance factors and eligibility, and finally apply any payout cap.
Is STIP the same as STI?
Yes, in most companies STIP (Short Term Incentive Plan) and STI (Short Term Incentive) mean the same thing — a performance bonus tied to a yearly or quarterly period.
Why is my STIP lower than target?
Usually because company or team results landed below 100%, your individual score was under target, eligibility was prorated, or a modifier or cap reduced the payout.
What is a typical STIP target percentage?
Targets commonly range from about 5–15% of salary for individual contributors, rising to 20–50%+ for senior and executive roles, but it depends entirely on the plan.
How does a payout cap work?
A cap limits the maximum payout, often 150–200% of target. Even with strong performance the calculator will not pay above the cap.