OTE calculator
Work out on-target earnings from base and variable pay, or from OTE and a pay mix like 60/40. See the commission rate it implies, what you earn at your expected quota attainment with accelerators, a decelerator or a cap, and what lands in each paycheck. Free, no sign-up, nothing leaves your browser.
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The formula
How to calculate OTE
OTE, or on-target earnings, is what a salesperson earns in a year when they hit exactly 100% of quota: base salary plus variable pay at target.
Base salary is fixed. Variable pay at target, also called target incentive or on-target commission, is what the plan pays when you reach quota. Only the base is guaranteed: below quota you earn less than OTE, above quota usually more.
The payout curve decides how variable pay moves with your results. In a straight plan, 80% of quota pays 80% of the target variable. An accelerator raises the rate above quota, a decelerator lowers it below a threshold, and a cap stops the payout at a maximum.
The calculator keeps OTE true at 100% of quota. When you add a decelerator, the rate below the threshold drops and the rate between the threshold and quota rises, so hitting quota still pays exactly the target variable. Check that your plan document works the same way.
$150,000
80,000 + 70,000 = $150,000
A 53/47 pay mix: 53% of OTE is base salary and 47% depends on results.
10% of sales
70,000 ÷ 700,000 = 10%
Every $1,000 closed up to quota pays $100 of commission.
$171,000
80,000 + 70,000 × 1.3 = $171,000
The 20% above quota pays 1.5 times the rate, so variable pay is 130% of target.
Worked example
OTE for a SaaS account executive, step by step
Maya is offered $150,000 OTE: $80,000 base and $70,000 variable at target, on a $700,000 annual quota. Above quota the plan pays 1.5 times the rate, with no cap.
She expects to close $840,000 this year, which is 120% of quota. Her base is paid every two weeks, and her commission is spread over the year.
1. OTE: 80,000 + 70,000 = $150,000
2. Pay mix: 80,000 ÷ 150,000 = 53% base → 53/47
3. Commission rate: 70,000 ÷ 700,000 = 10%
4. Up to quota: 700,000 × 10% = $70,000
5. Above quota: 140,000 × 10% × 1.5 = $21,000
6. Total: 80,000 + 70,000 + 21,000 = $171,000 (114% of OTE)
7. Per month: 171,000 ÷ 12 = $14,250 (6,666.67 base + 7,583.33 variable)
8. Per quarter: $42,750 (20,000 base + 22,750 variable)
9. Base per paycheck: 80,000 ÷ 26 = $3,076.92
Maya's quota is 4.7 times her OTE. That is close to the 5x that QuotaPath, a commission software vendor, says most of the companies it speaks with use. Her total pay is 20.4% of the $840,000 she sells.
| Quota attainment | Sales closed | Variable pay | Total pay | Share of OTE |
|---|---|---|---|---|
| 50% | $350,000 | $35,000 | $115,000 | 76.7% |
| 75% | $525,000 | $52,500 | $132,500 | 88.3% |
| 100% | $700,000 | $70,000 | $150,000 | 100% |
| 125% | $875,000 | $96,250 | $176,250 | 117.5% |
| 150% | $1,050,000 | $122,500 | $202,500 | 135% |
Press Show example in the calculator to load these numbers and change any of them.
Benchmarks
How to choose a pay mix
Pay mix is the split of OTE between base and variable, written base first: 60/40 means 60% base and 40% at risk.
The Alexander Group, a sales consulting firm, calls the degree of persuasion the most important factor: how much the seller, rather than the product, brand or price, makes the customer buy. The more the result depends on one person, the more of the pay can be variable.
The same article points to more base for long sales cycles, team selling and very distinct products. It also advises more base when quotas are hard to set accurately or performance is hard to measure.
| Situation | Direction | Reference point |
|---|---|---|
| The rep alone wins or loses the deal | More variable | Alexander Group uses 50/50 as an example of an aggressive mix |
| SaaS account executive | Close to half and half | Median 53:47 across more than 170 B2B SaaS companies (Bridge Group, 2024) |
| Account manager, mostly existing customers | More base | Benchmarks from 58/42 to 95/5, median 80/20 (Alexander Group) |
| Long cycle, team selling, technical product | More base | Alexander Group: a more modest mix with higher base pay |
| Quota hard to set or measure | More base | Alexander Group: more base salary, less incentive |
Check the upside, not only the mix
Leverage is what top performers can earn. The Alexander Group uses 3 times the target incentive as its example for the best performers, around the 90th percentile. On a $100K, 70/30 plan that is $160K. See your own upside in the 150% row of the table under the result.
Check how much is really at risk
In a 2015 Harvard Business Review interview, Andris Zoltners warned about "free sales": repeat revenue that arrives almost automatically. A company may think it pays 60% salary and 40% commission, but with a lot of free sales the real commission share could be closer to 15%.
Set quota and OTE together
QuotaPath says most companies it speaks with set quota at about 5 times OTE, and that a smaller multiple such as 3x often works for smaller companies. The Bridge Group's 2024 medians, an $800K quota and $190K OTE, put the ratio at about 4.2.
Plan for missing quota
RepVue's Cloud Sales Index reported 43.24% attainment for Q3 2025, from about 49,720 ratings by sellers at 249 cloud companies. When fewer than half of reps reach quota, many earn less than OTE. Read the 75% row as carefully as the headline number.
Avoid these
Common OTE mistakes
Most surprises in sales pay come from reading OTE as a salary. These are the checks to make before you sign an offer or a new plan.
Treating OTE as guaranteed pay
Only the base is guaranteed. Compare offers at the attainment you really expect. Ask how many reps on the team hit quota last year, and enter that level in the calculator.
Comparing OTE without the quota
Two $150,000 offers are not equal if one has a $600,000 quota and the other a $1.2 million quota. Compare the commission rate and the quota to OTE ratio, which the calculator shows next to OTE.
Missing caps and decelerators
A cap at 150% of the target variable stops your pay growing after a big year. A decelerator cuts pay in a weak year. Both sit in the plan document, not in the offer letter, so ask for the document.
Budgeting on the monthly average
Variable pay rarely arrives evenly. Some plans pay commission quarterly, or only after the customer pays. Budget your fixed costs on the base paycheck and treat commission as it comes in.
Forgetting the ramp
New reps usually need months to build pipeline. Check whether the first quarters have a lower quota, a guaranteed commission or a draw, and how a draw is paid back.
Spreadsheets
OTE formulas for Excel and Google Sheets
Base salary in B2, variable at target in C2, quota in D2, attainment in E2 as a percentage, accelerator in F2, cap in G2 as a percentage of the target variable (0 for no cap).
OTE
Pay mix (base share)
Format the cell as a percentage.
Commission rate implied by the plan
Expected total pay with accelerator and cap
The Excel formula button under the result gives the formula for your exact plan, including a decelerator.
FAQ
OTE questions
What does OTE mean in a salary?
OTE means on-target earnings: base salary plus the variable pay you earn at exactly 100% of quota, usually per year. A job listed at "$150,000 OTE, 50/50" pays $75,000 base and $75,000 in commission or bonus when you hit quota.
How do you calculate OTE?
Add the base salary and the variable pay at target. If you know OTE and the pay mix instead, multiply OTE by the base share to get the base. $150,000 at 60/40 is $90,000 base and $60,000 variable.
Is OTE the same as salary?
No. Only the base salary is guaranteed. The variable part depends on how much of your quota you reach, so you can earn less or more than OTE. The calculator shows your pay from 0% to 150% of quota.
What is a good pay mix?
It depends on how much the seller decides the sale. The Bridge Group's 2024 report found a median 53:47 split for SaaS account executives. Alexander Group benchmarks for account managers range from 58/42 to 95/5, with a median of 80/20.
How do I work out my commission rate from OTE?
Divide the variable pay at target by your quota. $70,000 on a $700,000 quota is a 10% rate. If your rate looks very different from your colleagues', check whether the quota or the target variable is out of line.
What are accelerators and decelerators?
An accelerator raises the commission rate above quota, for example 1.5 times the rate for sales over 100%. A decelerator lowers the rate below a threshold, such as half rate below 50% of quota. A cap sets the most the plan will pay.
How is OTE paid out?
The base comes with every paycheck. Variable pay follows the plan: monthly, quarterly or yearly, sometimes only after the customer pays. The calculator spreads the expected variable evenly, so treat its monthly figure as an average.
Does the calculator store my data?
No. Everything runs in your browser. The share link keeps your numbers in the address after the # sign, which is not sent to our server.
References
Sources
- Median SaaS AE OTE, pay mix and quota: The Bridge Group, "2024 SaaS AE Metrics & Compensation: Benchmark Report", March 5, 2024
- Pay mix, degree of persuasion, leverage and caps: Alexander Group, "Sales Compensation: Getting the Mix and Leverage Right", checked October 31, 2026
- Account manager pay mix benchmarks: Alexander Group, "Sales Compensation: Setting Pay Mix with a Structured Approach", checked October 31, 2026
- Free sales and the real incentive share: Harvard Business Review, "Getting Beyond 'Show Me the Money'", interview with Andris A. Zoltners, April 2015
- Quota attainment: RepVue, Cloud Sales Index, Q3 2025, checked October 31, 2026
- Quota to OTE ratio: QuotaPath (commission software vendor), "Introducing QuotaPath's Quota:OTE Ratio Calculator", checked October 31, 2026
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