Sales Commission & OTE Calculator

Enter your plan and your numbers to see commission earned, total comp, and OTE, plus what you would take home at every level of quota attainment.

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Editorial note: This tool is for informational and educational purposes only and is not financial, tax, or legal advice. It models a common single-rate plan with an optional over-quota accelerator. Real comp plans add tiers, caps, draws, clawbacks, splits, and different rates per product, so treat the output as an estimate and read your own plan document for the exact terms.

Base, variable, and OTE

Sales pay has two parts. The base salary is fixed and lands whether or not you sell. The variable, or commission, moves with performance. Add the base to the target variable, which is the commission paid at exactly 100 percent of quota, and you get on-target earnings, or OTE. That is the headline number recruiters quote, and it is only real if you hit quota.

The split between the two is the pay mix. A 60,000 dollar base with a 60,000 dollar target variable is a 50/50 mix and a 120,000 dollar OTE. The wider the variable share, the more your take-home swings with attainment.

How the commission is calculated

Commission rate = target variable ÷ quota. This is the rate that pays the full target variable when you land exactly at quota.
Commission at or below quota = actual sales × the rate.
Commission above quota = the quota portion at the base rate, plus every dollar past quota at the rate times your accelerator.
Total comp = base salary + commission earned.

The calculator above uses this structure and then plots your total comp at 40, 70, 100, 130, and 160 percent of quota so you can see the whole curve, including the jump the accelerator creates once you clear 100 percent.

What the numbers tell you

Attainment drives everything. Commission is a function of how much of quota you close, so the gap between your sales and your quota is the gap between your pay and your OTE.
Accelerators reward the top. Above quota, pay climbs faster than sales. Clearing quota early in the year is worth far more than the same dollars would be below it.
Pay mix sets your risk. A heavier variable share means more upside and more downside. Know the mix before you take the seat.

Since attainment sets your pay, the useful next question is how to hit and beat quota. Work back from the number with the Sales Funnel Calculator, check whether you are carrying enough open deals with the Pipeline Coverage Calculator, and see how fast your pipeline turns into revenue with the Sales Velocity Calculator.

Frequently asked questions

What is OTE (on-target earnings)?

OTE is the total pay you earn at 100% of quota: base salary plus the target variable. A $60,000 base with a $60,000 target variable is a $120,000 OTE, split 50/50 between fixed and variable pay.

How is sales commission calculated?

A common plan sets the rate at target variable divided by quota, then multiplies by actual sales. A $60,000 target variable on a $600,000 quota is a 10% rate, so $540,000 in sales earns $54,000. Accelerators add a higher rate above quota.

What is a good base-to-variable pay mix?

50/50 is the common benchmark for quota-carrying account executives. Roles with less direct control, like SDRs or account managers, lean to 60/40 or 70/30, weighting pay toward the base.

What is a commission accelerator?

A higher rate that applies to sales above quota. A 1.5x accelerator pays one and a half times the base rate on every dollar past 100%, so total pay rises faster than sales once you clear quota.

Methodology. Rate = target variable ÷ quota. Commission = actual × rate when actual ≤ quota; otherwise quota × rate + (actual − quota) × rate × accelerator. Total comp = base + commission. OTE = base + target variable. Attainment = actual ÷ quota. The curve evaluates total comp at 40%, 70%, 100%, 130%, and 160% of quota using the same formula.