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OTE & Commission Rate Calculator

Compute on-target earnings (OTE), commission rate, and compensation split from base salary, variable pay, and quota.

Sales compensation often starts with OTE (on-target earnings): base + variable at 100% attainment.

From OTE and quota you can derive a simple commission rate (variable / quota) and sanity-check incentive alignment.

Prefer an explanation- Read the guide.
Related definitions:otequotaquota attainment
OTE (on-target earnings): definition, commission rate, and pitfallsSales ops metrics hub: quota, pipeline, win rate, and capacity planningSales quota setting: a practical framework (capacity, pipeline, and ramp)Quota attainment: formulas, pacing, and how to forecast safely
 
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Tip: you can type commas (e.g., 10,000).

Example

Using the default inputs, the result is:
$180,000.00
Base pay (annual)
$90,000
Variable pay at 100% attainment (annual)
$90,000
Quota (annual)
$900,000

How to calculate

  1. Enter base and variable compensation for the period (usually annual).
  2. Enter quota for the same period.
  3. Review OTE, OTE to quota ratio, commission rate, and base/variable split.
  4. Use the payout scenarios to see how earnings move at 80%, 100%, and 120% attainment.

Formula

OTE = base + variable; commission rate ~ variable / quota
  • Assumes linear commission proportional to quota attainment (no accelerators/decels).
  • Base and quota are for the same time unit (annual vs quarterly).

FAQ

What's a typical OTE split-
Many AE roles use ~50/50 base/variable, but it varies by motion and market. Use this as a sanity check, not a rule.
Does this include accelerators-
No. Accelerators can materially change effective commission rate at high attainment. Use a full comp plan model if you need precision.

Common mistakes

  • Mixing annual OTE with quarterly quota (unit mismatch).
  • Ignoring accelerators/decels and thresholds (this is a simplified model).
  • Optimizing commission rate without checking CAC/payback and sales cycle.

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Quick checks

  • Keep time units consistent (monthly vs annual) across inputs and outputs.
  • Segment by cohort/channel/plan before trusting a blended average.
  • Use the related guide to avoid common definition and denominator mismatches.