OTE calculator
This free OTE calculator shows your on-target earnings for any sales role. Enter your base salary, variable compensation target, and quota attainment to see total OTE, pay mix, and monthly breakdown.
Pay mix
Your compensation is split 50/50 base to variable. This is a balanced split typical for account executives.
Results
On-target earnings (OTE)
at 100% quota attainment
Actual earnings
at 100% attainment
Monthly take-home
$12,500/mo at target
Base:variable split
compensation ratio
Variable earned
of $75,000 target
Compensation breakdown
At 100% quota attainment, your on-target earnings are $150,000 per year ($12,500/month). Your pay mix is 50/50 base to variable.
How to calculate on-target earnings
The OTE formula
On-target earnings means the total compensation a salesperson receives when they achieve 100% of their assigned quota. Also known as OTE, this sales compensation metric combines fixed base salary with variable pay — commission, bonus, or both. OTE represents the earning potential of any sales position by combining base salary and commission into a single annual salary figure. To calculate on-target earnings, add the annual base salary to the annual variable compensation target. This tells you exactly what a sales professional can expect to earn when they hit their number.
Formula
OTE = Base Salary + Variable Compensation
Example: $75,000 + $75,000 = $150,000 OTE
OTE calculation example
An account executive has a base salary of $75,000 and a variable compensation target of $75,000 at 100% quota. Their OTE is $150,000 with a 50/50 base to variable split — a balanced pay mix where base salary plus commission equals total earnings. At 80% quota attainment, they earn $75,000 base + ($75,000 × 80%) = $135,000 total compensation. At 120% attainment, they earn $75,000 base + ($75,000 × 120%) = $165,000 — and possibly more if accelerators apply above quota. The OTE calculations change at different performance levels, which is why sales leaders use the calculator to model projected earnings across the sales team.
Base salary vs variable compensation
The base to variable split determines how much of your OTE salary is guaranteed versus performance-dependent. A higher base salary provides income stability, while more variable pay rewards top performers with uncapped commission potential. The split varies by sales role, seniority, and company stage. Getting the right pay mix is essential for both sales organizations designing compensation plans and sales representatives evaluating job offers. Whether it's a lower base salary with aggressive commission structure or a higher base salary with a modest payout, the OTE structure shapes sales performance across the entire sales team.
Typical base:variable splits by role
How quota attainment affects earnings
Quota attainment scales the variable portion of your OTE linearly. At 50% attainment, you earn 50% of your variable target. At 150%, you earn 150% — unless the company applies accelerators or decelerators. Most sales compensation plans include accelerators above 100% sales quota to incentivize overperformance and reward top performers who are closing deals consistently. Below a minimum threshold (often 50–70% attainment), some commission plans cap the payout at zero variable commission. The commission rate and accelerator tiers in your comp plan determine your potential earnings at each performance level.
Formula
Actual Earnings = Base + (Variable × Attainment%)
Example: $75,000 + ($75,000 × 120%) = $165,000
What is a good OTE for sales roles
A good OTE salary depends on the sales role, company stage, industry, and geographic market. Enterprise account executives at late-stage SaaS companies command different OTE than SDRs at early-stage startups. The right way to evaluate OTE is not the total number alone but the ratio of OTE to sales quota — what percentage of quota do you take home as total compensation. Sales leaders and RevOps teams use OTE benchmarks and performance metrics to design competitive compensation plans that attract sales professionals while keeping the OTE model sustainable.
Typical OTE ranges by role
These OTE ranges reflect total on-target earnings including base salaries and variable pay across US-based B2B SaaS companies. Actual annual earnings depend on quota attainment — historically, about 60–70% of sales reps hit quota in a given year. When applying for a sales position, ask what percentage of the sales team achieved 100% attainment last year. A $200,000 OTE where only 20% of reps hit quota is less attractive than a $150,000 OTE where 70% of the team reaches target. The total salary a sales professional actually takes home depends on how realistic the quota is, not just the OTE number on the offer letter. Use the calculator to determine the commission component of OTE at your expected attainment and see your projected earnings.
How to negotiate OTE
Negotiating on-target earnings starts with understanding the full OTE compensation structure, not just the headline OTE number. A sales compensation package includes base salary, variable targets, quota assignment, accelerators, clawbacks, and ramp terms. Combining base salary with variable compensation into total OTE is only the first step — the sales cycle length, commission plans, and performance targets all affect whether a salesperson will actually meet their sales quota. This free tool helps you model different scenarios so you can negotiate from a position of clarity.
Negotiate base salary first
Base salary is guaranteed regardless of quota attainment. Push for the highest base you can get because it compounds — future raises, equity grants, and severance are often calculated on base salary. A $5,000 increase in base salary adds $5,000 to your guaranteed annual income forever, while a $5,000 increase in variable only pays out when you hit quota.
Evaluate quota attainability
The most important question in any OTE negotiation is whether the quota is achievable. Ask the hiring manager what percentage of the team hit 100% last quarter and last year. Ask what the average attainment is across the team. If average attainment is 70%, multiply the variable by 0.7 to get a realistic earnings estimate. An OTE that only 10% of reps achieve is a marketing number, not a compensation number.
Understand the full comp plan
Beyond base salary and performance-based variable target, understand accelerators (multiplied commission rates above quota), decelerators (reduced rates below threshold), clawbacks (commission returned if customers churn), payment timing (monthly vs quarterly payouts), and ramp terms (guaranteed draw during onboarding). Each element of the sales comp plan affects your actual take-home pay. Use this OTE calculator to model how different attainment scenarios impact your annual earnings and earn at different performance levels before accepting the offer. Sales development reps and account executives should include OTE details in every compensation comparison.
OTE calculator FAQ
What does OTE mean in sales?
OTE stands for on-target earnings. It is the total annual compensation a sales rep earns when they hit 100% of their sales quota. OTE includes both base salary and variable compensation such as commission or bonus. If a job posting lists an OTE of $150,000, that means the rep earns $150,000 when they achieve their full quota — not that the base salary is $150,000.
How do you calculate OTE?
Add your annual base salary to your annual variable compensation target. If your base salary is $75,000 and your commission target at 100% quota is $75,000, your OTE is $150,000. The variable portion only pays in full when you reach 100% of your assigned quota. Below quota, you earn a proportional share of the variable component.
What is a typical OTE for an account executive?
Account executive OTE ranges from $100,000 to $300,000 depending on company size, industry, and deal complexity. Mid-market AEs typically earn $120,000 to $180,000 OTE. Enterprise AEs at larger companies can earn $200,000 to $350,000 OTE. The base to variable split for AEs is usually 50/50, meaning half the OTE comes from base salary and half from commission.
What is a good base to variable split?
The right split depends on the sales role. SDRs and BDRs typically see 60/40 to 70/30 splits — heavier on base because they generate pipeline, not closed revenue. Account executives usually get 50/50 splits, balancing risk and reward. Sales managers often see 60/40 to 70/30 base-heavy splits. More variable pay incentivizes higher performance but carries more income risk.
Is OTE guaranteed?
No. OTE is not guaranteed compensation. The base salary portion is guaranteed, but the variable portion depends entirely on quota attainment. If you hit 80% of quota, you typically earn 80% of the variable component. Some companies offer a ramp period where new hires receive guaranteed variable pay for the first 2-3 months regardless of performance.
What is the difference between OTE and base salary?
Base salary is the fixed, guaranteed portion of compensation paid regardless of performance. OTE is base salary plus the full variable compensation earned at 100% quota attainment. A rep with a $70,000 base and $150,000 OTE has $80,000 in variable compensation at target. The base is what you earn no matter what; OTE is what you earn when you hit your number.
How does quota attainment affect OTE?
Quota attainment directly scales the variable portion of OTE. At 100% attainment, you earn the full variable amount. At 50%, you earn half. Many companies add accelerators above 100% — a rep at 150% attainment might earn 1.5x or 2x the variable rate on revenue above quota. Below a threshold (often 50-70%), some plans pay zero variable.
What OTE should I negotiate for?
Research OTE for your specific role, market, and company stage on compensation benchmarks like Glassdoor, Levels.fyi, or Pave. Negotiate the base salary first since it is guaranteed income. Then negotiate OTE by understanding the quota — a $200,000 OTE against an unrealistic $2M quota is less attractive than $150,000 OTE against a $500,000 quota. Ask about historical quota attainment across the team.
What is capped vs uncapped OTE?
Capped OTE limits the total commission a sales rep can earn regardless of how much they sell. Uncapped OTE means there is no ceiling — the more you sell, the more you earn. Most competitive SaaS companies offer uncapped commission to attract top performers. Capped plans protect the company from outlier payouts but reduce motivation for overperformance. If a plan is capped, factor that into your OTE evaluation since your actual earnings have a hard ceiling.
How do OTE and sales cycle length relate?
Longer sales cycles typically come with higher OTE because each deal requires more time and effort from the salesperson. Enterprise deals with 6-12 month sales cycles often have OTEs of $200,000+ to compensate for the longer closing process. Inside sales positions with shorter sales cycles have lower OTEs but more frequent payouts. When evaluating OTE, divide it by the average number of deals per year to understand the commission per deal.
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