Measure what each scheme added over baseline, plan the next push for your reps, and show your CXOs whether the incentive spend paid for itself.
Key terms
Baseline sales
What sales would have been without the scheme, for the same period and scope.
Sales during scheme
Actual sales in the scheme period.
Incremental sales
Sales during the scheme minus baseline sales.
Sales lift
Incremental sales as a share of baseline sales.
Gross margin
The margin earned on the products in the scheme.
Incremental margin
Incremental sales multiplied by gross margin. This is what the scheme is paid out of.
Scheme cost
The incentives and payouts the scheme cost.
Return on scheme cost
Incremental margin minus scheme cost, divided by scheme cost. Above 0% means the scheme paid for itself.
Working example
An FMCG company ran an October festive scheme for distributors in its West region. The same weeks of the previous year, grown by the region's trend, give a baseline of ₹2,40,00,000. Sales in the scheme month were ₹3,00,00,000. Gross margin is 30% and the scheme cost ₹9,00,000.
Step 1. Incremental sales = ₹3,00,00,000 - ₹2,40,00,000 = ₹60,00,000
Step 2. Sales lift = 60,00,000 ÷ 2,40,00,000 × 100 = 25%
Step 3. Incremental margin = ₹60,00,000 × 30% = ₹18,00,000
Step 4. Net of cost = ₹18,00,000 - ₹9,00,000 = ₹9,00,000
Step 5. Return on scheme cost = 9,00,000 ÷ 9,00,000 × 100 = 100%
The answer
The scheme lifted October sales 25% over baseline. The extra margin was twice what the scheme cost, a 100% return, before checking whether November fell back.
$0
Sales Lift Amount
$0
Sales Lift Percentage
Sales lift shows what a scheme added over baseline. Use it with the return tab to judge whether the payout paid for itself.
Subtract baseline sales from sales during the scheme, divide by baseline and multiply by 100. Sales of ₹3 crore against a ₹2.4 crore baseline is a 25% lift. The baseline decides the answer, so set it before the scheme starts and use the same period and products as the scheme.
Multiply the incremental sales by gross margin, subtract the scheme cost and divide by the scheme cost. ₹60 lakh of extra sales at 30% margin is ₹18 lakh, so a ₹9 lakh scheme returned 100%. That is what a sales incentive roi calculator should show. Test a plan change against revenue before it pays.
Use the same weeks of the previous year, grown by the region's underlying trend, or a matched group of distributors not on the scheme. The weeks just before a festival are a poor baseline, because demand rises anyway. The sales growth calculator gives the trend rate to apply to the previous year.
Because distributors bought ahead to earn the scheme, so the following month runs below baseline. If November falls ₹30 lakh short after a ₹60 lakh lift in October, the net lift is ₹30 lakh. Measure the scheme month and the month after together, and track secondary sales to see whether stock reached the shelf.
Paying above baseline pays for the lift alone. A 3% payout on ₹3 crore of total sales costs ₹9 lakh. A 15% payout on the ₹60 lakh above baseline costs the same ₹9 lakh. None of it goes to sales that would have happened anyway. Incentive compensation management can hold the baseline in the plan so the payout follows it.
Compare each region on its own baseline, and read the lift in rupees beside the percentage. A small region can post a high percentage on a small base. Then compare the return on scheme cost, since margin differs by region and product. The sales margin percentage calculator gives each region's margin.
Last reviewed: 11 October 2026
Govern every payout that buys you growth.
Kennect calculates every scheme payout from your secondary sales data and keeps the baseline and rules on record. Every rupee of scheme spend traces back to the lift it bought.
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