Description
Clamp a supplied earnout payment to a nonnegative floor and cap.
Corporate finance calculations require consistent accounting periods, currencies, share bases and contract definitions. Restricted cash differs from available cash, a discount fraction depends on its denominator, and a debt or reserve balance is a bookkeeping relation. Supplied cash flows and rates describe scenarios rather than verified accounts or investment outcomes.
Clamp a supplied earnout payment to a nonnegative floor and cap.
When to use this tool
Use Earnout Payment Cap Floor when you already have rawPayment, floorAmount, capAmount and need to clamp a supplied earnout payment to a nonnegative floor and cap.
How to use the tool and how it works
- Enter rawPayment, floorAmount, capAmount. Use the units and conventions below.
- Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
- Read payment, adjustment. Use the output convention below.
Require 0<=floor<=cap; payment=max(floor,min(cap,raw)), adjustment=payment-raw.1
| Input field | Meaning and units | Accepted input |
|---|---|---|
| rawPayment | Raw Payment | Required. Finite number. |
| floorAmount | Floor Amount | Required. Finite number; minimum 0. |
| capAmount | Cap Amount | Required. Finite number. |
| Output field | Interpretation | Returned shape |
|---|---|---|
| payment | Payment | Required. Finite number. |
| adjustment | Adjustment | Required. Finite number. |
{
"input": {
"rawPayment": 120,
"floorAmount": 20,
"capAmount": 100
},
"output": {
"payment": 100,
"adjustment": -20
}
}Limitations and assumptions
- Raw payment may be negative. No earnout formula, contract, measurement, dispute, accounting treatment or actual entitlement is verified.
- Inputs must satisfy both the field types and the cross-field conditions above. Invalid input causes an error; a successful false flag or documented placeholder is a different result.
- Numeric calculations use binary floating point unless exact decimal-integer arithmetic is explicitly stated. No hidden measurement tolerance or decimal rounding is added; nonfinite or out-of-contract results are rejected. Numeric signed-zero results are exported as zero.
Alternative or Complementary methods
Reconcile actual statements, financing agreements, cap tables and cash-flow forecasts. Use full contractual terms and appropriate valuation or accounting methods when a local balance, fraction or present-value term cannot answer the financial question.
References
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