Commish › OTE calculator
OTE calculator
OTE (on-target earnings) is base salary plus the variable pay you earn at 100% of quota. A $90,000 base with $90,000 in target commission is a $180,000 OTE.
Formula
OTE = Base salary + Variable pay at 100% of quota Pay mix = Base ÷ OTE / Variable ÷ OTE Quota-to-OTE ratio = Quota ÷ OTE Implied commission rate = Variable ÷ Quota
Example
Base $90,000, variable $90,000, quota $900,000.
OTE is $180,000 with a 50/50 mix. Quota is 5.0x OTE and the implied rate is 10%. At 110% of quota, straight-line pay is $90,000 + $99,000 = $189,000.
Reading an offer with this calculator
Two numbers tell you most of what you need: the pay mix (how much is guaranteed) and the quota-to-OTE ratio (how hard the number is to hit). Then ask what share of the team reached 100% last year. An OTE most people miss is really a lower salary.
Common questions
What is a typical pay mix?
Account executives are often around 50/50 base to variable. Roles with less control over the sale, such as SDRs or account managers, tend to have more base, often 60/40 to 70/30.
What is a good quota-to-OTE ratio?
A quota of roughly 4x to 6x OTE is often cited for B2B software sales. Higher ratios make quota harder to reach for the same pay.
Is OTE guaranteed?
No. Only the base salary is guaranteed. Variable pay depends on attainment and on your plan's rules, such as floors, caps and clawbacks.
Should I negotiate base or OTE?
Base is guaranteed and usually anchors future raises, so it's often the better lever. If OTE goes up, check that quota didn't rise with it.
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