OTE Calculator
Updated November 2026 · Free · No sign-up
Decode OTE (on-target earnings) — split a package into base + variable, model earnings at 60-150% attainment, and see whether the "uncapped" upside is worth the base you’re trading.
Quick answer: OTE = base + variable at EXACTLY 100% quota. A $120,000 OTE at 60/40 = $72k base + $48k variable — at the realistic 70% median attainment you earn $105,600, not 120. Always model the downside case before signing.
Reading an OTE Offer
Three numbers define it: the split (your downside protection), the attainment DISTRIBUTION on the team (the realism check — ask "what % of reps hit quota last year, and what was median attainment?"), and the curve above/below 100% (accelerators, cliffs, floors). An OTE without those three answers is a slogan.
Worked Scenarios — $120k OTE, 60/40
| Attainment | Earnings | Reality check |
|---|---|---|
| 50% | $96,000 | Bad year / bad territory — can you live on it? |
| 70% | $105,600 | Typical team median — the honest planning number |
| 100% | $120,000 | The brochure number (~40-60% of reps reach it) |
| 130% (1.5× accel) | $141,600 | Top-quartile — accelerators doing their job |
| 200% (1.5× accel) | $192,000 | The uncapped dream — verify no cliff/cap clause |
The Questions That Price the Offer
- Attainment history by team and territory — under 50% hitting quota means OTE is marketing.
- Draw/ramp: non-recoverable guarantee for 2-6 months is standard; recoverable draws are loans.
- Clawbacks on churn/refunds, and payment timing (booking vs cash).
- Quota-setting cadence: annual quota hikes that outpace territory growth quietly cut OTE yearly.
Comparing OTE Against Salaried Offers
Risk-adjust: OTE × your honest attainment estimate (team median unless you know better), then run it through the offer comparison with the salaried alternative. A $120k OTE at 70% realism ($105.6k, volatile, clawback-exposed) vs a $100k salary + bonus is far closer than the headlines suggest — commission mechanics and the tax-withholding wrinkles live in the commission calculator.
Frequently Asked Questions
What does OTE mean?
On-Target Earnings: base salary + variable compensation at exactly 100% quota attainment — the brochure number, hit by maybe half of reps.
What is a typical OTE split?
60/40 base/variable for AEs, 50/50 in aggressive orgs, 70/30-80/20 for CS/supporting roles — the split is your downside floor.
What attainment should I assume?
The team median — commonly 60-80%; ask what percentage hit quota last year. Model 50/70/100% before accepting.
What are accelerators?
Higher commission rates above 100% (1.25-2×) rewarding over-performance — paired with the "uncapped?" question and any decelerators below threshold.
How do I compare OTE to a fixed salary?
Risk-adjust OTE by realistic attainment, subtract volatility/clawback risk, then compare totals — $120k OTE at 70% realism ≈ a $105k volatile salary.
✓ Formula verified • Last updated: November 3, 2026