Worked example
A rep with a $60,000 full monthly quota ramps over 3 months starting at 25%, with $6,000 of monthly variable at target and 50% of it guaranteed during the ramp.
| Input | Value |
|---|---|
| Full monthly quota | $60,000.00 |
| Ramp months | 3 |
| Month 1 quota (% of full) | 25% |
| Monthly variable at target (OTE variable) | $6,000.00 |
| Guaranteed variable during ramp | 50% |
| Result | Value |
|---|---|
| Year-1 ramped quota | $630,000.00 |
| Year-1 quota without ramp | $720,000.00 |
| Quota reduced by the ramp | $90,000.00 |
| Share of full-year quota reduced | 12.5% |
| Cost of guarantees | $9,000.00 |
| Month reaching full quota | 4 |
- Month 1 ramped quota: full quota × start %: $15,000.00
- Monthly step: (100% − start %) ÷ ramp months: 25%
- Year-1 ramped quota: Σ of 12 months: $630,000.00
- Full year: monthly quota × 12: $720,000.00
- Reduced by ramp: full − ramped: $90,000.00
- Guarantees: guaranteed % × variable × ramp months: $9,000.00
How the ramp is calculated
Ramp % in month m = start % + (100% − start %) × (m − 1) ÷ ramp months
Ramped quota in month m = full monthly quota × ramp % in month m
Quota reduced by the ramp = full monthly quota × 12 − Σ ramped monthly quotas
Cost of guarantees = guaranteed % × monthly variable × ramp months
The ramp climbs in equal steps and reaches 100% in the month after the ramp ends. With a 3-month ramp starting at 25%, months 1 to 3 carry 25%, 50% and 75% of quota, and month 4 carries the full number. Each month is rounded to the cent before the year is summed.
Ramped quota, guarantees and draws
- Ramped quota: a temporary, lower quota that lets a new hire earn commission at the normal rate while their pipeline is still being built.
- Non-recoverable guarantee: a minimum variable payment during the ramp that is never paid back. This calculator treats it as a floor: the figure shown is the most it can cost, reached when the rep earns nothing above it.
- Recoverable draw: an advance that is offset against future commission. If your ramp support is recoverable, use the recoverable draw calculator instead.
To see what the ramped quota means for a full team plan, carry the ramp length into the sales capacity calculator.
Limitations
- Only linear ramps are modeled. Stepped or back-loaded ramps need a month-by-month schedule.
- The guarantee cost is the maximum exposure, not a forecast; actual cost depends on what the rep earns in each ramp month.
- Year 1 means the rep’s first 12 months, not your fiscal year. A mid-year hire needs the months mapped to your calendar.
- We do not publish benchmark ramp lengths or starting percentages; base yours on your own sales cycle and time to first deal.
Frequently asked questions
What is a sales ramp?
A sales ramp is the period after a rep starts during which their quota is reduced because they are still learning the product and building pipeline. Quota rises month by month until it reaches the full number.
Why does the ramp reach 100% one month after it ends?
The ramp months are the months with a reduced quota. A 3-month ramp means three reduced months, so the first full-quota month is month 4. If the starting percentage is 100%, there is no reduction at all.
How long should a ramp be?
It should reflect how long it takes a new rep in your business to close their first deals, which depends on your sales cycle. We do not publish typical ramp lengths because we have no sourced data to support a range.
Is a guarantee the same as a draw?
No. A non-recoverable guarantee is kept by the rep whatever happens. A recoverable draw is an advance that is repaid out of later commission. They have very different cost profiles.