OTE vs base vs commission
A recruiter quoting “$120k OTE” has told you almost nothing. This guide explains what each of the three numbers actually promises, and the six questions that reveal whether an OTE figure is real.
Reviewed 20 August 2026 · gross estimates, not payroll or tax advice
Three numbers, three very different promises
Short answer
Base salary is what you are paid for turning up. Commission is what you are paid for selling. OTE is base plus commission assuming you hit exactly 100% of quota — a forecast, not a guarantee. A recruiter quoting “$120k OTE” has told you almost nothing until you know the split.
The split is the whole story
Two offers, both “$120,000 OTE”. Same headline. Radically different jobs.
| Offer A — 80/20 | Offer B — 50/50 | |
|---|---|---|
| Base salary | $96,000 | $60,000 |
| Variable at target | $24,000 | $60,000 |
| Earnings at 0% quota | $96,000 | $60,000 |
| Earnings at 70% quota | $112,800 | $102,000 |
| Earnings at 130% quota (1.5× accelerator) | $132,000 | $150,000 |
Typical splits by role: enterprise AE 50/50, mid-market AE 50/50 to 60/40, SDR/BDR 70/30 to 80/20, sales engineer 75/25 to 80/20, customer success with a renewal number 80/20 to 90/10, sales management 60/40 to 70/30.
What makes an OTE figure real or fictional
Comparing two offers properly
Do not compare OTE to OTE. Compare four numbers.
Run the numbers in the OTE calculator, then check the upside in the accelerator calculator.
Common misreadings
Frequently asked questions
What does OTE mean?
On-target earnings: base salary plus variable pay assuming you achieve exactly 100% of quota. It is a projection of total annual cash compensation at target performance, not a guaranteed salary.
Is OTE guaranteed?
No. Only the base salary component is guaranteed. The variable portion depends entirely on hitting quota, and in most plans it can be zero. Some offers include a guaranteed draw for the first one or two quarters, which is guaranteed only for that period.
What is a good OTE split?
It depends on how much control you have over the outcome. 50/50 is standard for quota-carrying account executives, 70/30 or 80/20 for SDRs and sales engineers, and 80/20 or 90/10 for customer success roles with a renewal target. Longer sales cycles and less control argue for a higher base.
How do I calculate OTE?
Add base salary to variable pay at 100% quota attainment. If you know the OTE and the split instead, multiply OTE by the base percentage to get base salary and by the variable percentage to get target commission.
Does OTE include bonuses?
It usually includes only the quota-linked variable component. Company-wide annual bonuses, signing bonuses and equity are normally quoted separately, so ask which elements a stated OTE contains before comparing offers.
Can I earn more than my OTE?
Yes, if the plan is uncapped or the cap sits above target. Plans with accelerators above 100% attainment are specifically designed to pay above OTE for overperformance. A capped plan limits how far above OTE you can go.
Related tools and guides
Written and reviewed by the BonusPayCalc editorial team. Every formula on this site is shown on the page that uses it, so you can check it against your own plan document. Figures are gross planning estimates and not payroll, tax, legal or HR advice — see methodology.