OTE Calculator (On-Target Earnings Breakdown)
Plug in your base, variable, and accelerator terms to see exactly what 80%, 100%, and 120% quota attainment actually pays out.
What's inside
- The core OTE formula and every term defined in plain language
- Fill-in input fields: base salary, target variable, quota, accelerator start threshold, accelerator rate, decelerator/floor rule
- Full worked example at $60,000 base / $60,000 variable / accelerator kicking in at 100%
- Payout table at 6 attainment scenarios: 60%, 80%, 100%, 110%, 120%, 150%
- The accelerator math spelled out step by step, not just the end number
- A decelerator/floor variant showing how sub-threshold attainment changes the formula
- 3 questions to ask your manager or comp team if any term isn't in writing
The core formula
`` Total Comp = Base Salary + (Target Variable × Attainment %) + Accelerator Bonus ``
Where Accelerator Bonus only applies above your plan's accelerator threshold (commonly 100%, sometimes lower), and is calculated only on the portion above that threshold, not on the whole payout.
Fill in your own plan's terms
| Term | Your number | Definition |
|---|---|---|
| Base Salary | $______ | Fixed pay, paid regardless of attainment |
| Target Variable (100% OTE variable) | $______ | Commission/bonus paid at exactly 100% attainment |
| Annual Quota | $______ | The revenue/booking number that equals 100% |
| Accelerator Threshold | ____% | Attainment level where the accelerator rate kicks in (e.g. 100%, 110%) |
| Accelerator Rate | ____x | Multiplier applied to variable earned above the threshold (e.g. 1.5x, 2x) |
| Decelerator/Floor | ____% | Attainment level below which payout ratio drops or a floor rate applies (e.g. below 50% pays $0 variable) |
Worked example
Plan terms: Base $60,000 | Target Variable $60,000 | Quota $600,000 | Accelerator threshold 100% | Accelerator rate 1.5x above threshold | Floor: no variable paid below 50% attainment
| Attainment | Revenue booked | Variable calculation | Variable paid | Total comp (Base + Variable) |
|---|---|---|---|---|
| 60% | $360,000 | $60,000 × 0.60 | $36,000 | $96,000 |
| 80% | $480,000 | $60,000 × 0.80 | $48,000 | $108,000 |
| 100% | $600,000 | $60,000 × 1.00 | $60,000 | $120,000 |
| 110% | $660,000 | ($60,000 × 1.00) + ($60,000 × 0.10 × 1.5) | $60,000 + $9,000 = $69,000 | $129,000 |
| 120% | $720,000 | ($60,000 × 1.00) + ($60,000 × 0.20 × 1.5) | $60,000 + $18,000 = $78,000 | $138,000 |
| 150% | $900,000 | ($60,000 × 1.00) + ($60,000 × 0.50 × 1.5) | $60,000 + $45,000 = $105,000 | $165,000 |
How the accelerator math works, step by step (120% example):
- Pay the full target variable for the first 100%: $60,000 × 1.00 = $60,000
- Take only the attainment above the threshold: 120% − 100% = 20%
- Apply that 20% to the target variable: $60,000 × 0.20 = $12,000
- Apply the accelerator multiplier to that portion only: $12,000 × 1.5 = $18,000
- Add the two pieces: $60,000 + $18,000 = $78,000 total variable
If your plan has a decelerator/floor instead
Some plans reduce the payout rate below a threshold rather than paying linearly down to zero. Example variant: below 50% attainment, variable pays at 0.5x rate instead of 1x.
`` Below floor threshold: Variable Paid = Target Variable × Attainment % × Decelerator Rate At or above floor, below accelerator threshold: Variable Paid = Target Variable × Attainment % Above accelerator threshold: Variable Paid = Target Variable + (Target Variable × (Attainment % − Threshold) × Accelerator Rate) ``
3 questions to ask if any term isn't in writing
- "Is the accelerator calculated only on attainment above threshold, or on the full payout once I cross it?" (These produce very different numbers — confirm which.)
- "Is there a cap on total variable payout, and if so, at what attainment %?"
- "Does the floor/decelerator reset each period, or does it look at trailing attainment?"
How to use it
Fill in your own plan's six terms in the input table, then rebuild the payout table using the step-by-step accelerator math shown in the worked example to see your real payout at any attainment percentage.