Worked example
A team that closed $2,400,000 against a $2,000,000 quota, a 1.5% override rate, a 1.5× accelerator above team quota and a $30,000 manager variable target.
| Input | Value |
|---|---|
| Team revenue for the period | $2,400,000.00 |
| Override rate | 1.5% |
| Team quota | $2,000,000.00 |
| Accelerator multiplier above 100% of team quota | 1.5 |
| Manager variable target | $30,000.00 |
| Result | Value |
|---|---|
| Override payout | $39,000.00 |
| Base override (revenue × rate) | $36,000.00 |
| Accelerator uplift | $3,000.00 |
| Team attainment | 120% |
| Payout vs manager target | 130% |
- Base override: team revenue × override rate: $36,000.00
- Revenue above team quota: $400,000.00
- Uplift: revenue above quota × rate × (multiplier − 1): $3,000.00
- = Override payout: $39,000.00
- Team attainment: revenue ÷ quota: 120%
- Payout ÷ manager target: 130%
Formula
Base override = team revenue × override rate
Accelerator uplift = max(0, team revenue − team quota) × override rate × (multiplier − 1)
Override payout = base override + accelerator uplift
Team attainment = team revenue ÷ team quota
The accelerator is incremental: it applies only to revenue above the team quota, the same convention as the accelerator calculator. Setting the rate so that rate × team quota equals the manager’s variable target makes 100% team attainment pay exactly on target.
How roll-ups work
Overrides usually stack up the hierarchy: the first-line manager earns on their reps, a second-line manager earns on all first-line teams below, and so on. Each level is a separate calculation on the revenue credited to its own organization, so run the calculator once per level.
- Use the same credited revenue the reps are paid on, after commission splits, so a split deal is not counted twice.
- Decide whether reps who left during the period still roll up; the plan document should say.
- Add every level’s override to the total commission rate to see the full variable cost of a sale.
Limitations
- One flat override rate; tiered overrides and per-rep weighting are not modelled.
- Clawbacks on team deals and caps on the manager payout are not applied.
- We do not suggest override rates; they depend on span of control and pay mix.
Frequently asked questions
What is a manager override?
It is variable pay for a sales manager calculated as a percentage of the revenue their team produces, rather than on deals the manager closes personally.
Is an override the same as a team quota bonus?
Not quite. An override pays on every dollar of team revenue; a team bonus usually pays a fixed amount for reaching an attainment level. Some plans combine both, which you can approximate here with the accelerator.
Does the override reduce what reps earn?
No. The override is paid on top of rep commissions from the company’s budget, which is why it should be included in total cost of sales.