Worked example
Base $80,000.00, variable target $80,000.00, annual quota $800,000.00, with a 1.5× accelerator on revenue above quota.
- OTE = $80,000.00 + $80,000.00 = $160,000.00.
- Pay mix = 50% base / 50% variable.
- Implied commission rate = $80,000.00 ÷ $800,000.00 = 10%.
- At 50% of quota: $40,000.00 variable, $120,000.00 total.
- At 100%: $80,000.00 variable, $160,000.00 total (= OTE).
- At 150%: $800,000.00 × 10% + $400,000.00 × 10% × 1.5 = $140,000.00 variable, $220,000.00 total.
Definitions
- On-target earnings (OTE)
- Total cash compensation a rep earns at exactly 100% of quota: base salary plus target variable pay.
- Pay mix
- The split between base and variable at target, e.g. 50/50 or 70/30. Higher variable shares put more pay at risk.
- Implied commission rate
- Variable target ÷ quota. If your plan uses tiers, this is the average rate the tiers must deliver at 100% of quota.
- Quota attainment
- Revenue closed ÷ quota. The pacing section projects the period-end result linearly and shows the revenue needed per remaining day.
Limitations
- Variable pay is modelled as a single commission rate with an optional accelerator and cap. Use the commission calculator for tiered plans.
- The pacing projection is linear; it ignores seasonality and deal timing.
- Market OTE benchmarks are not included: we do not publish salary figures we cannot source.
- Estimates only — not legal, payroll or tax advice.