Sales OTE calculator

What the calculation means

OTE means on-target earnings: annual base salary plus the variable amount earned when the plan’s target is met. The calculator separates that target from a lower or higher attainment scenario. It does not estimate how likely you are to hit quota.

For example, a fictional $60,000 base and $30,000 target variable amount produce $90,000 OTE. At 75% attainment under a strictly linear plan, variable pay would be $22,500 and total cash $82,500. This example is arithmetic, not a salary benchmark.

Use the written plan to check the result

Actual plans may reward accepted meetings, qualified opportunities, collected revenue, or several measures together. A threshold can delay payouts; an accelerator can increase the rate above target; a cap can limit upside. Credit splits and clawbacks can change which work is paid. Those rules need their own calculation.

This tool assumes a full year at the entered base and target variable amount. It does not model a partial year, ramp period, territory change, draw, guaranteed commission, or tax withholding. Do not treat the annual result divided by 12 as a promised monthly paycheck: payment timing may be quarterly or tied to collection.

Ask these questions before comparing offers

• What earns credit, and when is that credit paid?
• Is the quota annual, quarterly, or monthly, and does it change during ramp?
• How do thresholds, accelerators, caps, and clawbacks affect payout?
• What share of comparable, fully ramped reps reached quota in the relevant period?
• Which parts of the offer are recurring cash versus a one-time bonus or equity?

For definitions, see Salesforce’s OTE explanation. Then use our OTE and negotiation guide, comp-plan checklist, or compensation reading path to prepare the questions for your recruiter.