Retention Bonus Calculator

Formula

To calculate the Retention Bonus ($RB$):

\[ RB = AS \times \frac{RBR}{100} \]

Where:

$RB$ is the Retention Bonus ($)
$AS$ is the Annual Salary ($)
$RBR$ is the Retention Bonus Rate (%)

What is a Retention Bonus?

A retention bonus is a financial incentive offered to employees to keep them from leaving the company. It is often used during times of organizational change or when there is a high demand for the employee's skills in the market. The bonus is calculated as a percentage of the employee's annual salary.

Example Calculation 1

Let's assume the following values:

Annual Salary ($AS$) = $100,000
Retention Bonus Rate ($RBR$) = 10%

Using the formula:

\[ RB = 100,000 \times \frac{10}{100} = 100,000 \times 0.1 = 10,000 \]

The Retention Bonus is $10,000.

Example Calculation 2

Let's assume the following values:

Annual Salary ($AS$) = $75,000
Retention Bonus Rate ($RBR$) = 5%

Using the formula:

\[ RB = 75,000 \times \frac{5}{100} = 75,000 \times 0.05 = 3,750 \]

The Retention Bonus is $3,750.