FREE SALES PLANNING TOOL

OTE & Commission Structure Calculator

Model a sales rep’s pay plan and see how earnings change across different performance levels. Use base salary, OTE, variable commission, quota, flat-rate commission and accelerators to test whether a plan is simple, motivating and commercially sensible.

  • Reconcile base salary, variable pay and OTE automatically
  • Compare quota-based and flat-rate commission plans
  • See total earnings, effective commission rate and pay mix live
  • Model the shape of the plan from 50% to 150% attainment
  • Download a CSV summary for planning and review
Laptop mockup showing an OTE and commission structure calculator dashboard with sales earnings charts.

OTE & Commission Structure Calculator

Model a rep's on-target earnings and see how the plan pays out across attainment levels.

Plan type

Guaranteed annual pay, before any commission.
$
Enter a base salary.
Total expected pay at 100% of target. We'll derive the variable portion.
$
On-target commission. We'll derive OTE (= base + variable).
$
Enter either OTE or the variable portion.
Revenue target tied to 100% attainment (the variable above is fully earned here).
$
Enter an annual quota.
Flat rate paid on closed revenue. 100% attainment = the variable above.
Enter a commission rate.
Multiplier on commission earned beyond target, e.g. 1.5 = 1.5×. Blank = none.
Quota attainment 100%
Total earnings @ 100%
-
Base + variable earned
Effective commission rate
-
Variable earned ÷ revenue closed
Pay mix (base : variable)
-
 

Estimate only, not financial or compensation advice.

Plan shape across attainment

Enter base and OTE (or variable) to see the plan shape.

Bars show total earnings at each attainment level.

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How Sales Comp Plans Work

A sales rep’s pay is usually split into a guaranteed base salary and a variable commission portion. Together, these make up OTE, or on-target earnings, which is the expected annual pay when a rep reaches 100% of target.

The challenge is not just setting an attractive number. The plan has to support the right behaviour. Quota, pay mix and accelerators all affect how a rep thinks about risk, effort and over-performance.

This calculator helps make those relationships visible. It will not design the plan for you, but it gives you a clearer way to test whether the numbers make sense before they are shared with the team.

Best Practices for Sales Commission Structures

  • Match pay mix to the role. New-business roles can carry more variable pay; retention roles usually need more base.
  • Set quota from capacity. Quota should reflect territory, deal size, sales cycle and realistic conversion rates.
  • Keep OTE credible. If capable reps cannot realistically reach 100%, the plan will lose trust quickly.
  • Use accelerators carefully. Reward over-performance, but make sure margin and delivery capacity still hold.
  • Keep the maths simple. Reps should understand the plan without rebuilding it in a spreadsheet.
  • Review the full curve. Check underperformance, target performance and over-performance, not only the 100% case.

Want a Compensation Plan Your Team Can Trust?

A calculator can show the numbers. The harder part is building a pay plan that supports the right behaviour, fits your sales model and stays credible when the year gets difficult.

1000Steps helps B2B sales teams design practical sales systems, from role structure and targets to pipeline management, CRM execution and performance reporting.

 

Build a Better Sales System
What does OTE mean in sales?

OTE means on-target earnings. It is the total expected annual pay a sales rep should earn if they hit 100% of their target, usually made up of base salary plus variable commission.

What is a good base to variable pay mix?

A good base to variable pay mix depends on the role. New-business closing roles are often closer to 50:50 or 60:40, while account management and customer success roles are usually more base-heavy.

What is a quota-based commission plan?

A quota-based commission plan pays variable commission against a defined revenue target. At 100% quota attainment, the rep earns their full variable commission amount.

What is a flat-rate commission plan?

A flat-rate commission plan pays a fixed percentage of closed revenue. It is simpler than a quota-based model, but it still needs to be tested against OTE, expected deal volume and margin.

What is a sales accelerator?

A sales accelerator increases commission earned above a certain performance level, usually after 100% attainment. It is used to reward overperformance and keep top reps motivated beyond target.