The Science of Sales Commission
Sales compensation plans are designed to drive specific behaviors—usually closing more revenue. "Commission Calculator" helps you reverse-engineer your OTE (On-Target Earnings) to understand exactly how much each deal is worth to you personally. By modeling base rates and accelerators, you can gamify your own performance.
Most SaaS commission plans follow a "Base + Variable" model, typically split 50/50. For example, a $120k OTE might be $60k Base Salary and $60k Commission at 100% quota attainment. This calculator lets you verify if your plan's math actually adds up to your OTE.
Key Concepts Explained
OTE (On-Target Earnings)
Total pay if you hit exactly 100% of your quota. Includes Base Salary + Commission.
Accelerators
Higher commission rates unlocked after hitting 100% quota. Often 1.5x or 2x your base rate.
Effective Rate
Your specific commission percentage averaged across all deals, including lower/higher tiers.
Quota Attainment
Percentage of your target revenue closed. This activates your accelerators.
How to Maximize Your Payout
- Sandbag for Accelerators: If you're close to 100% at end of quarter, pushing a giant deal into the next quarter might lose you the accelerator bonus. OR, pulling a deal forward into the current quarter might unlock the 1.5x multiplier for the whole deal value (depending on your plan).
- Know Your Cliff: Some plans have a "cliff" where you earn 0% commission until you hit 50% attainment. This calculator assumes a standard "dollar one" commission structure.
- Negotiate the Multiplier: When accepting a job offer, the accelerator multiplier is often more negotiable than base salary. A 2x accelerator vs a 1.5x accelerator can mean $50k+ difference in a good year.