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OTE Calculator (On-Target Earnings)

Find your on-target earnings (OTE) from base salary and variable pay, or split a total OTE by pay mix. Then see what you would actually earn at any quota attainment, with accelerators above 100%, a payout threshold and an optional cap.

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Compensation
I know
$
$

Commission or bonus paid at exactly 100% of quota.

$
%

50 = a 50/50 split, 70 = 70/30.

$

Used for commission rate and sales figures.

Plan rules
%
×

1 = no accelerator; 2 = double rate above quota.

%

No variable pay below this attainment (0 = none).

%

e.g. 200; leave empty for uncapped.

Enter your values to see the result.
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How to use the OTE Calculator (On-Target Earnings)

  1. Choose what you know: base and variable pay, or the total OTE and pay mix.
  2. Enter your annual quota to see the implied commission rate (optional).
  3. Set your expected attainment, for example 120% of quota.
  4. Add plan rules: the accelerator above 100%, any threshold below which nothing is paid, and a cap if your plan has one.
  5. Review the table and chart to compare pay at different attainment levels.

How OTE and payouts are calculated

  • OTE = base salary + variable pay at 100% attainment
  • From pay mix: base = OTE × base share; variable = OTE − base
  • Variable earned = variable × min(attainment, 100%) + variable × (attainment − 100%) × accelerator, using attainment up to the cap, and 0 below the threshold
  • Base commission rate = variable at target ÷ quota

Example: $80,000 base, $80,000 variable, an $800,000 quota and a 1.5× accelerator. OTE is $160,000 and the base commission rate is 10%. At 120% attainment the variable is $80,000 + $80,000 × 20% × 1.5 = $104,000, so total pay is $184,000 (115% of OTE).

Common pay mixes

Pay mixBase on $150K OTEVariable on $150K OTEOften seen for
50/50$75,000$75,000Closing roles with direct revenue ownership
60/40$90,000$60,000Account executives, longer sales cycles
70/30$105,000$45,000Development reps, account management
80/20$120,000$30,000Customer success, technical sales support

Typical mixes differ by company and industry; these examples only illustrate the arithmetic.

Questions to ask about a sales comp plan

  • How many reps hit quota last year? An OTE that few people reach is not really on target.
  • Is variable pay capped? Uncapped plans let the accelerator keep paying; capped plans limit upside.
  • When is commission paid? Monthly, quarterly or on customer payment changes your cash flow.
  • Is there a ramp or draw for new hires? Many plans guarantee part of the variable during the first months.

Frequently asked questions

What does OTE mean?

OTE stands for on-target earnings: the total annual pay you receive if you hit exactly 100% of your target. It equals base salary plus variable pay (commission or bonus) at target. A job advertised at $160K OTE with a 50/50 split pays $80K base and $80K variable at 100% of quota.

What is a pay mix?

The pay mix is the split of OTE between guaranteed base and at-risk variable pay, written as base/variable. Roles that close deals directly often use 50/50 or 60/40, while roles with less direct control over revenue tend to have more base, such as 70/30 or 80/20. Plans vary between companies.

How do accelerators work?

An accelerator raises the commission rate once you pass quota. With a 1.5× accelerator, every dollar of attainment above 100% pays 1.5 times the normal rate. In this calculator, variable pay = variable × min(attainment, 100%) + variable × (attainment − 100%) × accelerator.

What is a payout threshold?

Some plans pay no variable compensation until you reach a minimum attainment, such as 50% of quota. Above the threshold this calculator pays the normal rate from the first dollar. Plans that ramp differently (for example decelerators between the threshold and 100%) need their own tiers.

Is OTE guaranteed?

No. Only the base salary is guaranteed. The variable part depends on performance, so you may earn less than OTE below target or more above it. Ask employers what percentage of reps actually reached quota last year.

How do I find my commission rate from OTE?

Divide variable pay at target by quota. $80,000 variable on an $800,000 quota is a 10% base commission rate. With a 1.5× accelerator the rate above quota is 15%.

Does this include taxes?

No. All figures are gross annual pay before taxes and deductions. Variable pay is often taxed as supplemental wages; use a paycheck or bonus tax calculator for take-home estimates.

Are all the tools on FreeToolCabin tested for quality and accuracy?

Yes! Every tool on our site undergoes automated Q/A testing in real browser environments to ensure high precision, correct output, and zero errors. If you happen to spot a bug or have a suggestion, please contact us at [email protected] and our team will review it right away.

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