Sales comp calculator
Split an OTE into base and variable, then see what a rep earns at 60, 100 and 150 percent of quota.
The plan
Variable is OTE minus base, $90,000, which is 10% of quota.
Attainment and accelerator
Commission earned
$90,000
On $900,000 sold at 100% of quota.
Total comp
$180,000
Base plus commission for the year.
Effective rate
10%
Commission divided by the revenue actually closed.
Quota coverage
5.00×
Quota divided by OTE: how many times the rep pays for the seat.
How this commission is built
- Up to 100% of quota, at 10%
- $90,000
- Above 100%, at 1.50× that rate
- $0
- Base salary
- $90,000
- Total comp
- $180,000
What each attainment level pays
| Attainment | Revenue closed | Commission | Total comp | Effective rate |
|---|---|---|---|---|
| 60% | $540,000 | $54,000 | $144,000 | 10% |
| 80% | $720,000 | $72,000 | $162,000 | 10% |
| 100%on target | $900,000 | $90,000 | $180,000 | 10% |
| 120% | $1,080,000 | $117,000 | $207,000 | 10.83% |
| 150% | $1,350,000 | $157,500 | $247,500 | 11.67% |
Ramp
A new rep carries a reduced quota while they ramp, stepped evenly until they hit full quota.
| Month | Quota carried | Monthly quota | Variable at plan | Monthly comp |
|---|---|---|---|---|
| Month 1 | 25% | $18,750 | $7,500 | $15,000 |
| Month 2 | 50% | $37,500 | $7,500 | $15,000 |
| Month 3 | 75% | $56,250 | $7,500 | $15,000 |
| Month 4fully ramped | 100% | $75,000 | $7,500 | $15,000 |
What these numbers assume
- One flat commission rate, worked out as variable divided by quota, paid on every dollar up to the accelerator threshold, and at the multiplier above it. Real plans often use tiers, per-product rates, a floor below which nothing is paid, and caps at the top.
- Attainment is measured against the annual quota and paid in full. Nothing here models quarterly or monthly measurement periods, the true-ups between them, or a plan that resets the accelerator each period, all of which change the number.
- A draw is treated as a guaranteed floor on commission for the year. Most draws are recoverable, meaning the shortfall is clawed back out of later commission, so the annual number is right but the cash during a slow quarter is not.
- The ramp steps quota evenly (with a 3-month ramp each month carries one more step of full quota) and assumes the plan pays full variable for hitting the ramped number. Some plans instead pay strictly at the commission rate on what is sold, which pays less.
- Gross figures only. No payroll taxes, employer contributions, benefits, equity, SPIFFs, clawbacks on churned accounts, or the delay between a deal closing and the commission being paid.
- This is a planning tool, not financial, tax, legal or employment advice, and it is not a benchmark for what a role should pay. The maths runs in your browser and nothing you type leaves it.
Every figure on this page is arithmetic on the numbers you type: no benchmark salaries, no market data and nothing fetched. The calculation runs in your browser and no input leaves it. This is a planning tool, not financial, tax, legal or employment advice.
Questions
- What is OTE?
- On-target earnings: what a rep takes home in a year if they hit exactly 100% of quota. It is base salary plus the variable component, and it is a target rather than a promise. Miss quota and the variable part shrinks, beat it and the accelerator pushes it past OTE.
- How is the commission rate worked out?
- Variable divided by quota. A plan with 180,000 of OTE on a 90,000 base has 90,000 of variable, and against a 900,000 quota that is a 10% commission rate. Enter the rate directly instead and the calculator works backwards to the variable and the OTE it implies.
- How does an accelerator actually pay?
- Only on the part of quota above the threshold. At a 10% rate with a 1.5x accelerator over 100%, a rep at 120% earns 10% on the first 100% of quota and 15% on the 20% above it, not 15% on the whole number. The breakdown on this page shows both parts separately so the difference is visible.
- What does the effective rate tell you?
- Commission divided by the revenue actually closed: what each dollar of bookings costs you in commission. It sits at the plan rate up to the accelerator threshold and climbs above it. It is the number to watch when you are deciding how aggressive an accelerator you can afford.
- What is a draw and how is it modelled here?
- A draw is a guaranteed minimum on the variable component, usually paid during ramp or a slow patch. This page treats it as a floor on annual commission and shows any top-up as a separate line. Most real draws are recoverable, meaning the shortfall is clawed back out of later commission. The annual total is then right, but the cash in a slow quarter is not.
- How is the ramp schedule built?
- Quota is stepped evenly across the ramp. With a three-month ramp the rep carries 25%, 50% and 75% of full monthly quota before going to 100% in month four, and the plan is assumed to pay full variable for hitting the ramped number. Plans that instead pay strictly at the commission rate on what is sold pay less during ramp.
- Are these numbers a benchmark for what a rep should be paid?
- No. Nothing on this page is market data: every figure comes from an input above it, including the pre-filled ones, which are there only to show the shape of the output. For benchmarks, use a compensation survey for your market, stage and segment.
- Does this handle a rep paid outside your home country?
- The maths does, because a commission plan is currency-agnostic. Paying the rep is the harder part: a commission run that crosses a border picks up transfer fees, an FX spread and a settlement delay, and gross-to-net depends on whether they are an employee or a contractor and where they are tax resident. None of that is modelled here.
Run the payment, not just the maths
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