# OTE & Commission Calculator

> Model your real take-home pay across accelerators, tiers, and quota-attainment scenarios before you sign an offer: so 'OTE' means something concrete, not a marketing number.

Free calculator/tool for sales reps. Topic: [Metrics, Analytics & RevOps](https://www.peerlab.ai/library/topic/metrics-analytics-revops/). Published by PeerLab in the [Sales Enablement Resource Library](https://www.peerlab.ai/library/). Source: https://www.peerlab.ai/library/ote-commission-calculator/

## How to use it

Fill in the worksheet with the actual numbers from an offer or comp plan, run the quota-attainment scenarios, and use the red-flag questions in your negotiation before you sign.

## What's inside

- The core OTE formula and terminology defined
- A fill-in worksheet for base, target variable, quota, and commission rate
- A worked example with a full tiered accelerator/decelerator structure
- A quota-attainment scenario table from 50% to 150%
- Red-flag questions to ask about any comp plan before signing
- A side-by-side worksheet for comparing two offers

## Terminology

- **OTE (On-Target Earnings)** = Base Salary + Target Variable (commission at 100% quota attainment)
- **Target Variable** = the commission you're paid if you hit exactly 100% of quota
- **Accelerator** = a higher commission rate that kicks in above a set attainment threshold (e.g., >100%)
- **Decelerator** = a lower commission rate below a set attainment threshold (e.g., <50%)

## Step 1: Your worksheet

| Input | Your number |
|---|---|
| Base salary | $______ |
| Target variable (on-target commission at 100%) | $______ |
| **OTE = Base + Target Variable** | **$______** |
| Annual quota | $______ |
| Commission rate at plan (100% attainment) | ______% |
| Accelerator threshold(s) and rate(s) | ______ |
| Decelerator threshold(s) and rate(s) | ______ |

## Worked example

- Base salary: **$60,000**
- Target variable: **$60,000** → **OTE = $120,000**
- Annual quota (bookings): **$600,000**
- Commission structure:
 - Below 50% attainment: **5%** of revenue booked (decelerator)
 - 50–100% attainment: **10%** of revenue booked (plan rate)
 - 100–120% attainment: **15%** of revenue booked on the portion above 100% (accelerator)
 - Above 120% attainment: **20%** of revenue booked on the portion above 120% (accelerator)

## Step 2: Quota-attainment scenarios

| Attainment | Bookings | Commission earned | Total comp (Base + Commission) |
|---|---|---|---|
| 50% | $300,000 | $300,000 × 5% = $15,000 | $75,000 |
| 70% | $420,000 | $420,000 × 10% = $42,000 | $102,000 |
| 90% | $540,000 | $540,000 × 10% = $54,000 | $114,000 |
| 100% | $600,000 | $600,000 × 10% = $60,000 | $120,000 (OTE) |
| 110% | $660,000 | $600k×10% + $60k×15% = $69,000 | $129,000 |
| 125% | $750,000 | $600k×10% + $120k×15% + $30k×20% = $84,000 | $144,000 |
| 150% | $900,000 | $600k×10% + $120k×15% + $180k×20% = $114,000 | $174,000 |

*(Substitute your own plan's rates and thresholds into the same row structure.)*

## Red flags to check before you sign

- [ ] **Ramp/guarantee period**: is there a guaranteed draw for the first 60/90/180 days, and is it recoverable or non-recoverable?
- [ ] **Quota proration for new hires**, is your first-year quota prorated to your actual start date and ramp period?
- [ ] **Accelerator reset timing**: does attainment reset monthly, quarterly, or annually? A quarterly reset with a slow Q1 can erase a strong Q4's accelerator.
- [ ] **Clawback policy**, what happens to paid commission if a deal churns or refunds within X months?
- [ ] **Plan-change notice period**, how much advance notice is the company required to give before changing the comp plan mid-year?
- [ ] **Multi-year deal proration**, is commission on multi-year contracts paid on total contract value or annual value only?
- [ ] **Team vs. individual quota**, is any portion of variable pay tied to team attainment you don't control?
- [ ] **Commission caps**, is there a maximum payout regardless of attainment above a certain %?

## Compare two offers side-by-side

| | Offer A | Offer B |
|---|---|---|
| Base salary | $______ | $______ |
| Target variable | $______ | $______ |
| OTE | $______ | $______ |
| Quota | $______ | $______ |
| Plan-rate commission % | ______% | ______% |
| Accelerator above 100% | ______ | ______ |
| Guarantee/ramp period | ______ | ______ |
| Clawback terms | ______ | ______ |
| **Realistic (not best-case) take-home at your expected attainment** | $______ | $______ |