Individual
Calculator/Tool
Free
OTE & Commission Calculator
Model your real take-home pay across accelerators, tiers, and quota-attainment scenarios before you sign an offer — so 'OTE' means something concrete, not a marketing number.
What's inside
- The core OTE formula and terminology defined
- A fill-in worksheet for base, target variable, quota, and commission rate
- A worked example with a full tiered accelerator/decelerator structure
- A quota-attainment scenario table from 50% to 150%
- Red-flag questions to ask about any comp plan before signing
- A side-by-side worksheet for comparing two offers
Terminology
- OTE (On-Target Earnings) = Base Salary + Target Variable (commission at 100% quota attainment)
- Target Variable = the commission you're paid if you hit exactly 100% of quota
- Accelerator = a higher commission rate that kicks in above a set attainment threshold (e.g., >100%)
- Decelerator = a lower commission rate below a set attainment threshold (e.g., <50%)
Step 1 — Your worksheet
| Input | Your number |
|---|---|
| Base salary | $______ |
| Target variable (on-target commission at 100%) | $______ |
| OTE = Base + Target Variable | $______ |
| Annual quota | $______ |
| Commission rate at plan (100% attainment) | ______% |
| Accelerator threshold(s) and rate(s) | ______ |
| Decelerator threshold(s) and rate(s) | ______ |
Worked example
- Base salary: $60,000
- Target variable: $60,000 → OTE = $120,000
- Annual quota (bookings): $600,000
- Commission structure:
- Below 50% attainment: 5% of revenue booked (decelerator)
- 50–100% attainment: 10% of revenue booked (plan rate)
- 100–120% attainment: 15% of revenue booked on the portion above 100% (accelerator)
- Above 120% attainment: 20% of revenue booked on the portion above 120% (accelerator)
Step 2 — Quota-attainment scenarios
| Attainment | Bookings | Commission earned | Total comp (Base + Commission) |
|---|---|---|---|
| 50% | $300,000 | $300,000 × 5% = $15,000 | $75,000 |
| 70% | $420,000 | $420,000 × 10% = $42,000 | $102,000 |
| 90% | $540,000 | $540,000 × 10% = $54,000 | $114,000 |
| 100% | $600,000 | $600,000 × 10% = $60,000 | $120,000 (OTE) |
| 110% | $660,000 | $600k×10% + $60k×15% = $69,000 | $129,000 |
| 125% | $750,000 | $600k×10% + $120k×15% + $30k×20% = $84,000 | $144,000 |
| 150% | $900,000 | $600k×10% + $120k×15% + $180k×20% = $114,000 | $174,000 |
(Substitute your own plan's rates and thresholds into the same row structure.)
Red flags to check before you sign
- Ramp/guarantee period — is there a guaranteed draw for the first 60/90/180 days, and is it recoverable or non-recoverable?
- Quota proration for new hires — is your first-year quota prorated to your actual start date and ramp period?
- Accelerator reset timing — does attainment reset monthly, quarterly, or annually? A quarterly reset with a slow Q1 can erase a strong Q4's accelerator.
- Clawback policy — what happens to paid commission if a deal churns or refunds within X months?
- Plan-change notice period — how much advance notice is the company required to give before changing the comp plan mid-year?
- Multi-year deal proration — is commission on multi-year contracts paid on total contract value or annual value only?
- Team vs. individual quota — is any portion of variable pay tied to team attainment you don't control?
- Commission caps — is there a maximum payout regardless of attainment above a certain %?
Compare two offers side-by-side
| Offer A | Offer B | |
|---|---|---|
| Base salary | $______ | $______ |
| Target variable | $______ | $______ |
| OTE | $______ | $______ |
| Quota | $______ | $______ |
| Plan-rate commission % | ______% | ______% |
| Accelerator above 100% | ______ | ______ |
| Guarantee/ramp period | ______ | ______ |
| Clawback terms | ______ | ______ |
| Realistic (not best-case) take-home at your expected attainment | $______ | $______ |
How to use it
Fill in the worksheet with the actual numbers from an offer or comp plan, run the quota-attainment scenarios, and use the red-flag questions in your negotiation before you sign.