Looking for ways to know how to **calculate bonus on salary** in **Excel**? Then, this is the right place for you. Sometimes, employees are given bonuses depending on their performance, salary, or special occasions. **Bonuses** depending on their salary can be calculated in Excel using some easy methods. Here, you will find **7** different step-by-step explained ways to **calculate bonus on salary **in Excel.

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## 7 Ways to Calculate Bonus on Salary in Excel

Here, we have a dataset of some employees containing their **Names** and **Salary**. The fixed amount of **Bonus** based on their **Salary Range** is also provided here. We will use this dataset to **calculate** their **Bonus** using different methods in Excel.

### 1. Using Nested IF Function to Calculate Bonus on Salary

In the first method, we will use **the Nested IF function** to **calculate bonus on salary**.

Follow the steps given below to do it on your own.

**Steps:**

- In the beginning, select Cell
**D5**. - Then, insert the following formula.

`=IF(C5>=$G$9,$H$9,IF(C5>=$G$8,$H$8,IF(C5>=$G$7,$H$7,IF(C5>=$G$6,$H$6,IF(C5>=$G$5,$H$5,0)))))`

Here, we used the **Nested IF **function where we used **5 logical_test** to check the **Salary range** for **Bonus**. First, we are checking if the **Salary** of **C5 **is **greater than or equal** to** H9** or not. Next, as **value_if_true** we used the **H9** cell and for **value_if_false** used another **IF **function to check another **range** **H8**. By following this we used **5 logical_test** within **5 IF **functions to calculate the **Bonus** of all ranges **Salary**.

- Now, press
**ENTER**. - Then, drag down the
**Fill Handle**tool to**AutoFill**the formula for the rest of the cells.

- Finally, you will get the
**Bonus**calculated based on**Salary**.

**Read More:** **Bonus Calculation as per Bonus Act in Excel (3 Suitable Examples)**

### 2. Employing IFS Function to Calculate Bonus on Salary in Excel

We can also **calculate bonus on salary** in Excel using **the IFS function**. Go through the following steps to do it on your own dataset.

**Steps:**

- First, select Cell
**D5**. - Then, insert the following formula

`=IFS(C5>=$G$9,$H$9,C5>=$G$8,$H$8,C5>=$G$7,$H$7,C5>=$G$6,$H$6,C5>=$G$5,$H$5)`

Now, we used the **IFS** function and declared **5 logical_test **within **1 **function. First, as a **logical_test** check if the value of **C5** cell is **greater than or equal** to** H9** cell or not. Then, as a **value_if_true **used **H9** cell, and in **value_if_false** used another **logical_test**. By following this structure, we checked all existing salary ranges to calculate **Bonus**.

- After that, press
**ENTER**. - Then, drag down the
**Fill Handle**tool to**AutoFill**the formula for the rest of the cells.

- Thus, you can get the value of
**Bonus**calculated using**the IFS function**.

### 3. Using VLOOKUP Function to Calculate Bonus on Salary

Now, we will use **the VLOOKUP function** to **calculate bonus on salary**. VLOOKUP is an Excel function that allows you to look up data in a vertically organized table.

**Steps:**

- In the beginning, select Cell
**D5**. - Then, insert the following formula.

`=VLOOKUP(C5,$G$5:$H$9,2, TRUE)`

Here, in the **VLOOKUP function**, we selected Cell **C5** as **lookup_value**, selected Cell **G5:H9** as **table_array**, **2** as **column_index_number** from where the **Bonus** amount will be extracted. Then, **TRUE** as **range_lookup** to get the **Approximate Match**.

- Now, press
**ENTER**. - Then, drag down the
**Fill Handle**tool to**AutoFill**the formula for the rest of the cells.

- Finally, you will get the
**Bonus**calculated based on**Salary**using the**VLOOKUP****function**.

### 4. Applying LOOKUP Function to Calculate Bonus on Salary

In the fourth method, we will use **the LOOKUP function** to **calculate bonus on salary**. The function returns the corresponding value from another one-row or one-column range after doing a rough match lookup in a one-row or one-column range.

**Steps:**

- In the beginning, select Cell
**D5**. - Then, insert the following formula.

`=LOOKUP(C5,$G$5:$G$9,$H$5:$H$9)`

Here, in the **LOOKUP function**, we selected Cell **C5** as **lookup_value**, selected Cell **G5:G9** as **lookup_vector** and **H5:H9** as **result_vector.**

- Now, press
**ENTER**. - Then, drag down the
**Fill Handle**tool to**AutoFill**the formula for the rest of the cells.

- Finally, you will get the
**Bonus**calculated based on**Salary**using the**LOOKUP****function**.

**Similar Readings**

**How to Create a Monthly Salary Sheet Format in Excel (with Easy Steps)****Create Salary Slip Format with Formula in Excel Sheet****Create Tally Salary Slip Format in Excel (With Easy Steps)****How to Calculate Commission in Excel Using VLOOKUP**

### 5. Using MAX Function to Calculate Bonus on Salary in Excel

Here, we have a dataset containing the **Names** and **Daily Sales** of some employees. **Hurdle** is provided as **$300** and **Bonus** as **20%**. Now, we will use **the Max function** to **calculate bonus on salary** in Excel for this dataset.

Follow the given steps below to do it on your own.

**Steps:**

- First, select Cell
**D5**. - Then, insert the following formula.

`=MAX((C5-$G$4)*$G$5,0)`

Here, we first **subtracted** Cell **C5** by **Hurdle** and then, **multiplied** the value by **Bonus** then used it as **number1 i**n the **MAX function.** We also provided **0 **as **number2** for comparison purposes. The function will return whichever is **maximum**.

- After that, press
**ENTER**. - Now, drag down the
**Fill Handle**tool to**AutoFill**the formula for the rest of the cells.

- Thus, you can get the value of
**Bonus**calculated using**the MAX function**.

**Read More:** **How to Calculate Sales Commission Formula in Excel (3 Easy Ways)**

### 6. Applying Arithmetic Operators to Calculate Bonus on Salary

We can also **calculate bonus on salary** by applying **Arithmetic Operators** in Excel. Go through the following steps to do it on your own.

**Steps:**

- In the beginning, select Cell
**D5**. - Next, insert the following formula.

`=(C5-$G$4)*$G$5*(C5>=$G$4)`

Here, we applied an **Arithmetic Operator** named **Boolean**. We first **subtracted** Cell **C5** from **Hurdle** and then, **multiplied** the value by **Bonus**. Then we used the **logical_operator â€śgreater than equalâ€ť **to check if the value of **C5** cell is **greater than **or** equal to G9 **cell or not.

- Then, press
**ENTER**. - Now, drag down the
**Fill Handle**tool to**AutoFill**the formula for the rest of the cells.

- Thus, you can get the value of
**Bonus**calculated using**Arithmetic Operators**.

### 7. Use of Generic Formula to Calculate Bonus on Salary in Excel

In the last method, we will use **the Generic formula** to **calculate bonus on salary** in Excel. Here, we have a dataset containing the **Name**, the value of **Basic Salary+DA** and **No of Months Worked**. **Bonus** is given as **8.33%**.

Follow the steps to do it on your own dataset.

**Steps:**

- In the beginning, select Cell
**D5**. - Then, insert the following formula.

`=C5*D5*$C$14`

Here, we **multiplied** the value of **Basic Salary+DA**, **No of Months Worked** and **Bonus** **percentage** to get the resultant amount of **Bonus** for the employees.

- After that, press
**ENTER**. - Then, drag down the
**Fill Handle**tool to**AutoFill**the formula for the rest of the cells.

- Finally, you will get the
**Bonus**calculated based on**Salary**using the**Generic formula**.

**Read More: How to calculate salary increase percentage in Excel [Free Template]**

## Practice Section

You will get a dataset like an image given below in this article to practice on your own.

## Conclusion

So, in this article, you will find 7 ways to **calculate bonus on salary **in Excel. Use any of these ways to accomplish the result in this regard. Hope you find this article helpful and informative. Feel free to comment if something seems difficult to understand. Let us know any other approaches which we might have missed here. And, visit **ExcelDemy** for many more articles like this. Thank you!

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