Work out what a sales compensation plan really pays: on-target earnings, what you take home if you hit 75% or 125% of quota, and how accelerators and caps change it.
On-target earnings (OTE)
$0
At the quota you expect
$0
That is about $0 a month before tax. Your commission rate is 0% of what you sell.
| Quota hit | Variable | Total pay |
|---|
How this is calculated
Commission rate = variable pay at target ÷ quota. Up to 100% of quota you earn that rate on every dollar; above 100% the rate is multiplied by the accelerator. A cap limits variable pay to that percentage of the target. Plans differ (thresholds, tiers, draws, clawbacks), so treat this as an estimate and check your plan document.