OTE Calculator
Use this calculator for sales compensation queries where the user needs base salary, target commission, quota attainment and total on-target earnings in one view.
Best next steps
- Sales compensation calculator — broader plan model
- Commission paycheck calculator — commission check estimate
- What is OTE? — definition guide
OTE formula
The actual earning estimate adjusts variable pay by attainment. The page should not be mixed with generic bonus calculators because OTE is a sales compensation intent.
FAQ
What does OTE mean?
OTE means on-target earnings: base salary plus the variable pay expected at target performance.
Is OTE guaranteed?
No. The base salary is usually fixed, but variable pay depends on quota attainment, commission rules or incentive plan terms.
How do I calculate OTE?
OTE is usually base salary plus target variable pay. Actual earnings change when quota attainment is above or below target.
Worked example: base salary plus on-target commission
A role with a $60,000 base and $40,000 on-target variable has an OTE of $100,000, a 60/40 split. If the rep hits 120% of quota and commission is linear, variable pay rises toward $48,000.
OTE assumes target attainment. Actual pay moves with quota performance.
OTE questions
What does OTE mean?
OTE means On-Target Earnings — the total pay a role earns at 100% of quota or target, combining base salary and on-target variable pay.
How do you calculate OTE?
Add base salary to the on-target variable (commission or bonus). $60,000 base + $40,000 variable = $100,000 OTE.
What is a typical OTE pay mix?
Sales roles often run 50/50 to 70/30 base-to-variable. More transactional, high-velocity sales lean toward more variable.
Is OTE guaranteed?
No. OTE is the expected total at target attainment. Earnings fall below OTE if quota is missed and can rise above it with accelerators.