---
title: "Bonus Calculation Process"
slug: "bonus-calculation-process"
description: "Which part of target bonus will be granted after performance review is calculated based on personal objectives. Learn about calculation scheme in this article."
tags: ["Local HR", "HR"]
updated: 2023-02-23T08:58:57Z
published: 2023-02-23T08:58:57Z
canonical: "help.lanteria.com/bonus-calculation-process"
---

> ## Documentation Index
> Fetch the complete documentation index at: https://help.lanteria.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Bonus Calculation Process

Which part of the target bonus the employee is entitled to is calculated based on the employee achievement for the personal objectives. Depending on the **% Complete** of each goal and the goal weight, the payout is calculated in the **Performance Review Form** (**Performance** > **Performance Reviews** > **Reviews**).![image049](https://cdn.document360.io/c315c68d-2799-4fcc-9a39-084315b58f14/Images/Documentation/image049.png)

The payout is calculated as follows:

- If achievement ≤ threshold, Payout = 0%
- If achievement < target, Result = (actual - threshold)/(target - threshold)
- If achievement ≥ target, Result = 1 + {(actual - target)/ (max - target) *[(max bonus % - target bonus %) / target bonus %]}

If the actual value is more than maximum value, the maximum value and not the actual result must be used in the calculation.

The calculated payout will be multiplied by the objective weight. The summary for all objectives will define which part of the target bonus is achieved.

## Related

- [Performance Reviews](/performance-module-workflows.md)
- [Bonus Calculation Settings](/bonus-calculation-settings.md)