OTE calculator
Enter your base salary and variable pay to see your on target earnings. The numbers stay in your browser. Nothing is sent anywhere.
Your pay mix is 50 percent base to 50 percent variable.
What is OTE
OTE stands for on target earnings. It is the total pay a sales rep earns if they hit 100 percent of quota. OTE combines two parts: a fixed base salary and variable pay, which is commission and bonus tied to performance.
OTE is the number companies use when they set pay for a sales role and when reps compare offers. It tells you what full performance is worth, not what a rep is guaranteed to take home.
How to calculate OTE
The formula is base salary plus variable pay at target. If your base is 70000 dollars and your variable pay at 100 percent of quota is 70000 dollars, your OTE is 140000 dollars.
The split between base and variable is called the pay mix, shown as base percent to variable percent. A 50 to 50 mix means half of OTE is guaranteed and half depends on hitting quota. Higher variable share usually means higher upside and higher risk.
How to improve your OTE plan
Match the pay mix to the sale. Long, complex deals usually call for more base so reps can work patiently. Short, high volume sales usually call for more variable pay so effort tracks results.
The plan only works if quota attainment is measured accurately. If your CRM does not reflect how deals actually close, variable pay gets disputed and trust breaks down. A CRM built around your real pipeline keeps quota numbers clean enough to pay against.
What is a typical base to variable pay mix
Pay mix depends on how much control a role has over closing revenue. These are commonly cited general ranges, not fixed rules.
| Role | Typical base / variable mix |
|---|---|
| SDR or BDR | 60 / 40 |
| Account executive | 50 / 50 |
| Sales engineer | 70 / 30 |
| Customer success | 80 / 20 |
| Sales leadership | 70 / 30 |
These are general ranges to orient you, not a guarantee. Your actual mix depends on deal size, sales cycle length, and how your company structures commission.
How to think about your OTE and pay mix
Match variable pay to control over outcomes
Give more variable pay to roles that directly control the close, like account executives. Give more base to roles that support the sale but do not control it, like sales engineers or customer success.
Keep the base livable
Base salary should cover living costs on its own, regardless of quota attainment. If reps cannot pay rent without hitting quota, they take fewer risks and burn out faster.
Tie variable pay to quota, not activity
Pay reps for closed revenue against a clear quota, not for calls made or emails sent. Activity metrics measure effort. Quota measures results.
Avoid caps that punish top reps
A hard cap on commission tells your best sellers to stop selling once they hit it. Uncapped plans or accelerators past 100 percent keep top performers motivated instead of coasting.
Track attainment against numbers you trust
A pay plan only works if quota attainment is measured accurately. A CRM built around your real pipeline keeps those numbers clean enough to pay against.
Frequently asked questions
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