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On‑Target Earnings (OTE) Calculator

On-Target Earnings (OTE) Calculator

Estimate commissions, visualize payout at different attainment levels, switch annual/monthly, and adjust tiers or currency.

Model any plan in Bentega

Snapshot (at 100%)

OTE (100%)
$0
Payout now
$0
Pay mix (base)
0%
Pay mix (variable)
0%
Tiered commission
Toggle flat vs. tiered rates
e.g., 0.10 = 10%
1.0 = 100%
1.5 = 50% boost above threshold

Payout at different attainment

80% attainment
Commission
$0
Total payout
$0
100% attainment
Commission
$0
Total payout
$0
120% attainment
Commission
$0
Total payout
$0

How this calculator works

Commission is computed on credited revenue (attainment × quota). Choose a flat rate or tiered rates with attainment boundaries. If an accelerator is set, commission above the accelerator threshold is multiplied by the accelerator multiplier. Pay mix reflects base vs. variable at exactly 100% attainment. Numbers are examples and not financial advice.

Model any plan in Bentega See pricing

Use the calculator above to model OTE, commissions, accelerators, and pay mix. Toggle annual/monthly, add tiers, and share presets with your team.

What is On‑Target Earnings (OTE)?

On‑Target Earnings (OTE) is the total pay an employee earns at 100% attainment of their goals. For sales roles, OTE = base salary + target variable (commissions/bonuses) when you hit quota.

Example: Base $60,000 + Target Variable $60,000 → OTE $120,000 with a 50/50 pay mix.

Why OTE matters

  • Sets clear expectations for total earnings at plan goal.

  • Aligns pay with performance and company revenue targets.

  • Powers headcount planning, hiring ranges, and budget forecasts.

How to calculate OTE (quick guide)

  1. Define base salary. Annual or monthly.

  2. Set quota/target. Annual revenue or KPI target.

  3. Choose commission structure. Flat rate or tiered tiers (e.g., 8% up to 60% attainment, 10% up to 100%, 14% up to 150%).

  4. Configure accelerators/caps (optional). Reward over‑performance; cap payouts if needed.

  5. Validate pay mix at 100%. OTE pay mix = base / OTE and variable / OTE.

  6. Sanity‑check at 80%/100%/120% using the scenario cards.

Formula (flat rate):

  • Commission at attainment A = A × Quota × Commission Rate, with accelerator applied above the threshold.

  • OTE = Base + Commission at 100%.

Typical pay mixes by role (guidance, not rules)

  • AE / New Business: 50/50 to 60/40

  • SDR / BDR: 65/35 to 70/30

  • Account Manager / Expansion: 60/40 to 70/30

  • CSM (with variable): 75/25 to 85/15

  • Sales Leader: 60/40 (with team or MBO components)

Use the calculator’s period toggle to sanity‑check monthly payroll impact.

Commission structures you can model

  • Flat rate (single % on all credited revenue).

  • Tiered by attainment (higher % after crossing thresholds).

  • Accelerators (multiplier above a set attainment).

  • Payout caps (optional total payout ceilings).

Best practice: keep tiers simple (2–4 bands) and publish definitions in the plan doc. Complex tiers invite confusion and disputes.

Examples

SaaS AE example

  • Base $70k, Quota $700k, Flat 10%, Accelerator 1.5× above 100%

  • OTE target variable = $70k → OTE $140k, pay mix 50/50.

SDR example

  • Base $45k, KPI = 240 qualified meetings/year, Bonus $250/meeting

  • Variable at 100% = 240 × $250 = $60k → OTE $105k, pay mix ~43/57.

CSM example

  • Base $80k, Renewal/NRR bonus = $8k at 100%

  • OTE $88k, pay mix ~91/9.

Tip: If you compensate on bookings, confirm crediting rules and clawbacks in your plan.

 

OTE vs. salary vs. total compensation

  • Base salary is guaranteed.

  • OTE is expected earnings at plan goal (base + variable at 100%).

  • Total compensation can exceed OTE when performance >100% or include equity/benefits not in OTE.

Governance & fairness

  • Publish the plan with examples, edge cases, and dispute timelines.

  • Pay periods, crediting (who gets credit when), and clawback policy should be explicit.

  • Audit monthly: attainment accuracy, shadow accounting, and quota reasonableness.

Internal links

Frequently Asked Questions

What is OTE?

OTE is base salary plus target variable pay (commissions/bonuses) at 100% attainment.

Is OTE guaranteed?

No. Base is guaranteed; variable depends on performance against targets.

How is OTE different from total compensation?

Total compensation can be higher than OTE if you exceed targets or include equity/benefits.

What’s a typical pay mix for AEs?

Commonly 50/50 to 60/40. Early‑stage SaaS skews 50/50; enterprise roles can be 60/40.

What is an accelerator?

A multiplier that boosts the commission rate above a threshold (e.g., 1.5× after 100% attainment).

Should I cap payouts?

Caps control budget but can disincentivize top performers. Consider soft caps or approval thresholds.

How many commission tiers should I use?

2–4 tiers are usually enough for clarity.

Does OTE include equity?

Usually no. Equity and benefits are typically outside OTE.

How do monthly vs. annual settings work?

The calculator converts inputs when you toggle the period, so math stays consistent.

Can I share a preset?

Yes - use the Share preset link button.