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.
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.
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?"