Liquidity$2 500
Free Strategy Tool

Sales Commission & OTE Calculator

Reveal the Real Payout

Net Agent Commission$0

Output Benchmarks

Rookie< 60%
Performance Plan risk
Solid100%
Hitting OTE
Club> 150%
Accelerator territory

How to use this Sales Commission & OTE Calculator

01

Input Data

Enter your current Sales metrics into the labeled fields above.

02

Analyze Ratios

Instantly view efficiency ratios calculated against elite standards.

03

Optimize

Compare your results with the Benchmarks on the right to find leverage points.

Strategic Context

THE STRATEGIC VIEW

Sales roles are often sold on OTE (On-Target Earnings). But OTE is a myth until you hit 100% of your quota. This calculator reveals the base-salary reality and the impact of accelerators/decelerators on your actual take-home pay.

Operational Reality

THE OTE ILLUSION

Recruiters sell the dream of "On-Target Earnings" (OTE), but the reality is that 67% of reps miss quota. Your base salary covers the rent; commission builds the wealth. To calculate your true earning potential, you must understand the "Attainment Curve."

DECELERATORS: THE 'KILL ZONE'

Most compensation plans have a "Cliff" or "Floor" (often at 50% attainment). If you close 40% of your quota, you don't get 40% of your commission—you might get 0%. This "Kill Zone" is designed to filter out low performers quickly.

- Danger: Assuming linear payout.

- Reality: Exponential decay below 50%.

ACCELERATORS: THE WEALTH BUILDER

The math flips after 100%. "Accelerators" typically pay 1.5x, 2.0x, or even 3.0x on every dollar sold above quota. This is where the top 1% of reps make 50% of their annual income in Q4. Strategic reps "sandbag" deals to ensure they hit accelerators in a single quarter rather than spreading them thinly across two.

Tactical FAQ

TACTICAL Q&A

Q: What is a standard Base/Commission split?
A: For B2B SaaS, the industry standard is 50/50. If OTE is $120k, then Base is $60k. Enterprise roles often shift to 60/40 (higher base) due to longer 9-18 month sales cycles where commission is lumpy.
Q: How do I spot a bad comp plan?
A: Look for "capped commissions" or extremely high "Cliffs" (e.g., no payout until 80% quota). A plan with no accelerators stops incentivizing you the moment you hit your number.
Q: Should I negotiate Base or OTE?
A: Always negotiate Base. OTE is theoretical; Base is guaranteed cash flow. A $5k increase in Base is worth more than a $20k increase in "potential" OTE that requires 150% attainment.
Q: What are SPIFFs?
A: "Sales Performance Incentive Funds." These are short-term bonuses (e.g., "$500 per demo booked this week") used to drive activity. Treat them as lunch money, not rent money.
Recommended Course

Master The System

This calculator is just one tactical step. The full strategy is documented in the core protocol.

Source Lesson

Sales Engineering: Sales Protocol

Start Lesson →

Related concepts

#Strategic Math#Capital Allocation#Unit Economics