What is OTE in sales?
OTE Calculator
OTE (on-target earnings) is what a sales job pays in a year if you hit exactly 100% of quota: base salary plus variable pay at target. Enter an offer to see its pay mix and what you earn if you miss or beat quota.
You would earn $140,000 for the year: $70,000 base plus $70,000 variable.
| Quota reached | Total pay | Variable part |
|---|---|---|
| 0% | $70,000 | $0 |
| 50% | $105,000 | $35,000 |
| 75% | $122,500 | $52,500 |
| 100% | $140,000 | $70,000 |
| 125% | $157,500 | $87,500 |
| 150% | $175,000 | $105,000 |
| 200% | $210,000 | $140,000 |
A simple model of a pay plan: straight-line pay up to quota, then the accelerator. Real plans can differ, so read yours. Everything runs in your browser. Nothing you type is stored.
- Free, no sign-up
- Nothing you type is stored
- Shows the math
What OTE means
On-target earnings (OTE) is what a sales job pays in a year if you hit exactly 100% of your quota. It is your base salary plus your variable pay at target. A job listed at $140,000 OTE with a $70,000 base pays the other $70,000 only if you reach quota.
The split between the two is the pay mix, written base first. A 50/50 mix means half your target pay depends on results. A 70/30 mix means 70% is base and only 30% is at risk.
Why the number at 100% is not the whole story
Two offers with the same OTE can pay very differently when you miss or beat quota. An accelerator raises the pay for each point above 100%, so a strong year pays more. A minimum means variable pay starts only after you reach a set share of quota. A cap stops variable pay growing past a set point.
That is why the calculator shows a table from 0% to 200% of quota, and a slider for your own guess. Try the level you honestly expect to reach, not just 100%.
Comparing two offers
Tap Compare a second offer and fill in both. The table then shows each offer's pay side by side at every level of quota. A higher base usually wins if you expect to miss quota, and a bigger variable with an accelerator usually wins if you expect to beat it. Move the slider to see which offer pays more at each level.
If you know each quota, add it. The calculator shows the quota as a multiple of OTE, so you can see which job asks you to sell more for each dollar of pay.
Questions
What does OTE stand for?
On-target earnings. It is the total yearly pay for a sales job when you reach exactly 100% of quota: base salary plus variable pay at target.
What is a 60/40 pay mix?
60% of your on-target earnings is base salary and 40% is variable pay. On a $150,000 OTE, that is a $90,000 base and $60,000 of variable pay at quota.
What is an accelerator?
A higher pay rate for sales above quota. With a 2 times accelerator, each point above 100% pays twice what a point below 100% pays. It rewards beating your number.
Is OTE guaranteed?
No. Only the base is guaranteed. The variable part depends on how much of your quota you reach, so ask what share of the team usually hits quota before you count on the full OTE.
Does this include taxes or benefits?
No. It shows pay before taxes and leaves out benefits, stock, and bonuses outside the sales plan. Real plans can also pay variable monthly or quarterly with their own rules. Your signed pay plan decides what you are paid.
Do you store the offers I type?
No. The math runs in your browser and nothing you type is sent to us or stored. The numbers ride in the page address only so you can copy a link to share.
Know your number? Plan the work
The Sales Activity Calculator works backward from your quota to the calls and emails you need each day.
Try the Sales Activity Calculator