How the bonus calculator works
Most bonus plans start from a target, either a percentage of base salary or a set dollar amount. A payout or performance factor then scales it up or down, and new hires are often prorated by the months they were eligible. Enter your plan's numbers to see the estimate. For commission-based pay, use the commission calculator; to see the bonus inside a full paycheck, use the gross pay calculator.
Bonus formula
Worked example
$80,000 salary, 10% target, 120% payout, eligible 9 months
- Target: $80,000 × 10% = $8,000.00.
- Payout: $8,000.00 × 120% = $9,600.00.
- Prorated: $9,600.00 × 9 ÷ 12 = $7,200.00, which is 9% of salary.
Bonus table
Full-year bonus at 100% payout.
| Salary | 3% | 5% | 10% | 15% | 20% |
|---|---|---|---|---|---|
| $50,000 | $1,500 | $2,500 | $5,000 | $7,500 | $10,000 |
| $65,000 | $1,950 | $3,250 | $6,500 | $9,750 | $13,000 |
| $80,000 | $2,400 | $4,000 | $8,000 | $12,000 | $16,000 |
| $100,000 | $3,000 | $5,000 | $10,000 | $15,000 | $20,000 |
| $125,000 | $3,750 | $6,250 | $12,500 | $18,750 | $25,000 |
Frequently asked questions
How is a bonus calculated as a percentage of salary?
Multiply your base salary by the bonus percentage. A 10% target on an $80,000 salary is $8,000. Many plans then adjust that target for company or individual performance.
What does a prorated bonus mean?
If you were eligible for only part of the year, for example because you started in April, the bonus is reduced in proportion: 9 eligible months pay 9 ÷ 12 of the full amount.
Why is my bonus check smaller than expected?
This calculator shows the gross bonus. Bonuses are usually treated as supplemental wages, and withholding on them can differ from a regular paycheck, so the deposit is lower than the gross amount.
Do bonuses affect overtime pay?
For nonexempt employees, nondiscretionary bonuses, such as those promised for meeting production or attendance goals, generally count toward the regular rate used for overtime under federal rules. See how overtime pay is calculated.
Related guides
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How this calculator was built. The formula, defaults, and edge cases are documented in a research record and covered by automated tests. It estimates gross amounts from your inputs; it does not determine legal entitlements, taxes, or take-home pay. Read our methodology and disclaimer.
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