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On-Target Earnings (OTE) Calculator

Enter base salary and on-target commission to get the OTE and commission share.

Result

$120,000.00
41.67%

How it is calculated

The tool adds two annual amounts: OTE = base + commission, where base is the guaranteed salary and commission is the variable pay you would earn at exactly 100% of quota. It then reports the variable share: commission share = commission ÷ OTE × 100, shown as a percentage with two decimals. If both amounts are zero the share is 0%. Neither value may be negative. Amounts are shown in dollars and are treated as gross figures, with no tax, benefits, accelerators, caps or quota attainment applied, so actual earnings in a given year can be above or below OTE. Use the same period (annual or monthly) for both inputs.

Worked example

An offer of 70,000 base plus 50,000 commission at 100% of quota. OTE: 70,000 + 50,000 = $120,000.00. Commission share: 50,000 ÷ 120,000 × 100 = 41.67%. So roughly 42% of the package depends on hitting quota. Compare an offer of 85,000 base with no commission: OTE is lower at $85,000.00, but the share is 0.00% and the pay is guaranteed.

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Common mistakes

  • Comparing offers by OTE alone. Two plans with the same OTE can differ greatly in risk, so look at the commission share too.
  • Treating OTE as guaranteed. It is what you earn at 100% of quota; missing quota or a plan with a threshold can pay far less.
  • Mixing periods, for example an annual base with a monthly commission, which distorts both the total and the share.
  • Computing the share as commission divided by base. The tool divides by OTE (base plus commission), so 50,000 on 70,000 is 41.67%, not 71.43%.
  • Including a signing bonus, equity or benefits in the commission field, which are not quota-linked variable pay.

About this calculator

On-Target Earnings (OTE) is the standard figure used in sales compensation to describe total expected pay: base salary + the commission or bonus a rep earns when hitting 100% of quota. It's what recruiters quote in a job offer and what sales leaders use to benchmark compensation plans against competitors.

This calculator takes the base salary and the on-target commission and returns the combined OTE, along with the commission's share of total pay — a figure that reveals how commission-heavy (and therefore how variable and quota-dependent) a compensation plan really is. A rep with a small commission share has a fairly stable income; one with commission making up half of OTE has much more upside, but also much more risk if they miss quota.

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Comments (1)

  • Editorial team

    Before comparing offers, ask for the written commission plan and look for four things: whether pay follows bookings or collected cash, any cap on commission, whether part of it is a draw you may have to repay, and what happens after you leave. Those details decide how close real pay gets to the headline figure. What base and variable split is normal for the role you are looking at?

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