Variable Comp OTE & Quota Simulator
Simulate sales earnings with accelerators and effective commission rates. Enter values for instant results with step-by-step formulas.
Formula
Earnings = Base + (Revenue × Rate) + (Over-Quota Revenue × Rate × Accelerator)
Total Earnings combines the fixed Base Salary with Variable Commission. Commission is calculated linearly up to the quota threshold. Revenue generated *above* the threshold triggers the 'Accelerator Rate' (multiplier), drastically increasing the payout per dollar sold.
Worked Examples
Example 1: SaaS AE Plan
Problem:$80k Base, $160k OTE (50/50). Quota $800k. Accelerator 1.5x > 100%. Hit 110%.
Solution:Base Rate: $80k/$800k = 10%. Revenue $880k. First $800k earns $80k. Next $80k earns 15% ($12k). Total Var: $92k.
Result:$172,000 Total Earnings
Frequently Asked Questions
What is OTE?
On-Target Earnings. It is the sum of Base Salary + Variable Commission assuming 100% quota attainment. It is the 'expected' salary for a successful rep.
Can quota change mid-year?
Yes, companies often adjust quotas based on business needs or territory changes. This is usually unpopular but legal.