Adding gaming elements to conventional teaching methodologies has gained a lot of attention because of its ability to incorporate an engaging, motivating, and fun-based environment. As a result, learners' dedication and performance are also better. Unfortunately, current gamification models do not consider the effect of different levels of gamification. Therefore, this study provides deeper insight into the three levels of gamification on the motivation, engagement, and performance of 450 undergraduates enrolled in an online course. The level of gamification is experimentally manipulated based on different gaming elements and the presentation of learning content. The outcomes were measured at three points. Quantitative methods were used to analyze defined measures, and qualitative methods were used to analyze open-ended measures. The results revealed no change in outcomes between all groups during pre-course and mid-course assessments. However, motivation, engagement, and performance are improved in gamified environments, and these effects are more noticeable towards the end of the course. It was discovered that the gamification level was a significant determinant of motivation and performance but not engagement, which highlights the importance of implementing gamification in educational platforms. The gamification appeared to be a pedagogically profound way of engaging students in the online course. The whole setup triggered the learner's motivation to learn and perform in the course. We conclude that gamification does help in motivation, engagement and performance if considered properly. Thus, educators and educational institutions seeking to enhance student motivation and performance may look at the 'right level' of gamification as an appropriate methodology.