Sales commission calculator: what your deals pay, with OTE and accelerators

A sales commission calculator should answer the question every seller asks in the second week of the quarter: if I close what I think I'll close, what do I take home? This one works from the five numbers in almost every plan, shows your total pay against your OTE, and draws your whole pay curve so you can see exactly how much the next deal is worth. To work out the demos it takes to get there, use the sales target calculator.

How the calculator works

• OTE = base salary + commission at 100% of quota.
• Commission rate = commission at quota ÷ quota.
• Commission = rate × bookings up to quota, plus rate × accelerator × bookings above quota.
• Threshold: below it, commission is zero.
• Total pay = base salary + commission.

The pay curve plots total pay from 0% to 200% of quota. The flat start is the threshold, the slope to quota is your rate, and the steeper part after quota is the accelerator.

A worked example

Take a made-up seller at Tallyfox, a fictional scheduling-software company. Their base is $70,000 and they earn $70,000 of commission at quota, so their OTE is $140,000. Their quota is $700,000 of bookings, which makes their rate 10%. Commission starts at 50% of quota, and there's a 1.5x accelerator above quota.

They book $840,000: 120% of quota. They earn 10% on the first $700,000, which is $70,000, and 15% on the $140,000 above quota, which is $21,000. Commission is $91,000 and total pay is $161,000: $21,000 above OTE. The next $10,000 they book is worth $1,500, half as much again as a deal before quota.

If they'd booked $300,000 instead, they'd be at 43% of quota, under the threshold, and take home their $70,000 base salary only. At exactly $700,000, 100% of quota, they'd earn their $140,000 OTE to the dollar.

Reading your comp plan

Your plan document has every number the calculator needs, usually on the first page or two. Look for the base salary, the target incentive or variable pay (that's your commission at quota), the quota and the period it covers, the commission rate or the way it's worked out, and any tiers. Accelerators are often written as a higher rate above 100%, or as a multiplier. Thresholds can be called a minimum, a gate or a floor. If your plan has several tiers of accelerator, use the one that applies to the bookings you expect. And check when commission is paid: monthly, quarterly, or when the customer pays the invoice.

How to use the result

Know what each deal is worth. Seeing that the next $10,000 pays $1,500 makes the trade-offs concrete: which deal to chase, which discount to hold the line on.

Check where the curve bends. If you're near the threshold, the next few deals are worth far more than they look. If you're past quota, every deal earns the accelerated rate.

Plan the year, not just the month. Slide attainment from 80% to 120% and you'll see the gap between a decent year and a great one. Then work out what it takes to close that gap.

Earn more from the demos you already hold

The fastest way to move up the curve is to win more of the demos on your calendar. AfterDemo turns each demo into one interactive proposal page, built from what the buyer said, that their whole team can read, share and accept in one click. You see who's engaged and what to do next. See a live example, or start free for 30 days.

Questions people ask

What is OTE in sales?+

On-target earnings: what you're paid in a year if you hit exactly 100% of quota. It's your base salary plus your commission at quota. A $70,000 base with $70,000 of commission at quota is a $140,000 OTE.

How do I calculate my sales commission?+

Divide your commission at quota by your quota to get your rate. Multiply your bookings up to quota by that rate. If your plan has an accelerator, multiply bookings above quota by the rate times the accelerator, and add the two. If there's a threshold and you're below it, commission is zero.

What is a commission accelerator?+

A higher commission rate on bookings above quota. With a 10% rate and a 1.5x accelerator, every dollar you book past quota earns 15 cents instead of 10. It rewards the sellers who keep going after they've hit their number.

What is a commission threshold?+

The attainment you have to reach before any commission is paid. With a 50% threshold, a seller at 45% of quota earns base only, while a seller at 50% earns commission on everything booked so far.

Does this include tax?+

No. It shows gross pay before tax and deductions, which is how comp plans are written. Your take-home depends on where you live and how your employer withholds on commission.