OTE Calculator
Build OTE from base salary and target variable pay, or split a quoted OTE into its base and commission portions. Then compare gross earnings at different quota results.
| Quota attainment | Estimated earnings |
|---|---|
| 0% | — |
| 50% | — |
| 80% | — |
| 100% (OTE) | — |
| 120% | — |
| 150% | — |
Best next steps
- Sales compensation calculator — broader plan model
- Commission paycheck calculator — commission check estimate
- What is OTE? — definition guide
Last reviewed 19 October 2026
What does OTE mean?
OTE stands for on-target earnings: base salary plus variable pay, assuming you hit exactly 100% of quota. It is a projection of total annual cash compensation at target performance — not a salary, and not a guarantee. The base component is usually fixed; the variable component depends on plan terms and results and can be zero.
A “$120,000 OTE” role could mean $96,000 base plus $24,000 variable, or $60,000 base plus $60,000 variable. Those are very different jobs with the same headline number, which is why the split matters more than the total. The calculator above lets you enter either side of the offer and compare outcomes at several quota levels.
OTE formula
In this simplified model, only target variable pay moves with attainment. Your actual plan may add thresholds, caps, draws or a different accelerator formula.
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.
Compare two OTE offers by pay mix
These are illustrative offers, not market benchmarks. Both quote $120,000 OTE, but the fixed pay differs by $36,000. The table assumes straight-line commission below target and no draw or threshold.
| Quota attainment | 80% base / 20% variable | 50% base / 50% variable |
|---|---|---|
| 0% | $96,000 | $60,000 |
| 50% | $108,000 | $90,000 |
| 100% (OTE) | $120,000 | $120,000 |
Use the “Quoted OTE + base share” mode above to compare your own offers. Ask the employer which payments count toward OTE and whether a threshold or recoverable draw changes these examples.
Six questions that tell you whether an OTE is real
What OTE pays at each level of attainment
A $70,000 base with $30,000 target variable — a $100,000 OTE on a 70/30 split — with linear commission to target and a 1.5× accelerator above it.
At the same $100,000 OTE with a 50/50 split, 50% quota produces $75,000 under this linear model: $50,000 base plus $25,000 variable. The 70/30 offer produces $85,000. This is why the split matters.
Compare plans in the sales compensation calculator or check upside in the accelerator calculator.
Four ways people misread OTE
OTE questions
What does OTE mean?
On-target earnings: base salary plus variable pay assuming exactly 100% quota attainment. It projects total annual cash compensation at target performance and is not a guaranteed salary.
How do I calculate OTE?
Add base salary to target variable pay. If you know the OTE and the split instead, multiply the OTE by the base percentage for base salary and by the variable percentage for target commission.
Is OTE guaranteed?
No. OTE includes target variable pay, which depends on the plan and actual results. Check any guarantee or draw separately in the offer.
What is a good OTE split?
There is no universal best split. Compare the guaranteed base, at-risk portion, plan thresholds and actual attainment for comparable roles. Use the reverse calculator to model the offer you received.
Can I earn more than my OTE?
Yes, if the plan is uncapped or the cap sits above target. Accelerators above 100% attainment exist specifically to pay above OTE for overperformance.
Does OTE include bonuses and equity?
It depends on the offer. Ask whether the quoted OTE includes commission, other bonuses or equity, and whether the components have the same payment conditions.
What is OTE on a payslip?
OTE is a target figure in an offer or plan, not a payment by itself. Payslips generally show amounts actually paid; labels and timing vary by employer.
Reviewed 19 October 2026 by the BonusPayCalc editorial team. Gross planning estimates only — not payroll, tax, legal or HR advice. See methodology for how formulas are chosen, or report a correction.