Use this calculation when every balance, flow, and elapsed period follows the same accounting basis, currency, entity boundary, and reporting period. It is useful for a reproducible schedule or analytical cross-check, but the result should still reconcile to the ledger.

Bonus target

Bonus base amount such as target net income or the salary base the bonus rate applies to.

Bonus rate percent

Bonus rate on a 0-100 percentage scale applied to the base.

Months elapsed

Whole months of the year elapsed for the cumulative accrual; later than 12 is capped at the full-year bonus.

The implemented rule is: Accrue a bonus expense monthly straight line from a bonus target and percentage: per-month expense and the cumulative accrued amount after elapsed months.^[1]

Monthly bonus expense

Bonus expense recognized each month under straight-line accrual.

Accrued to date

Cumulative bonus liability accrued through the elapsed months, capped at the full-year bonus.

The calculator applies the stated arithmetic and does not decide whether a recognition method or classification is permitted under a particular accounting framework. Estimates, cutoff errors, seasonality, acquisition effects, inconsistent averages, and differing policies can make a mathematically correct result misleading.

Reconcile the inputs to the general ledger and supporting schedules. For reporting decisions, compare the result with the entity's accounting policy, applicable GAAP or IFRS guidance, prior-period disclosures, and an accountant's review.

• Deferred Revenue Straight-Line Recognition Calculator

  Recognize deferred revenue straight line by month: per-month revenue, amount recognized after elapsed months, and the remaining deferred balance.

• Retained Earnings Rollforward Calculator

  Roll retained earnings forward for a period: beginning balance plus net income (or minus a net loss) minus dividends declared.