Career & Money
Sales Commission Calculator
Model a real sales comp plan: base salary, quota, tiered commission rates, bonus, and draw, then see your OTE, actual payout at any attainment level, and commission per hour.
How it works
Behind the numbers
OTE, on-target earnings, is base salary plus the commission you earn at exactly 100% of quota plus your target bonus. It is the number every B2B seller fixates on when comparing jobs, because two offers with the same OTE can pay very differently at 80% or 130% attainment.
Tiered plans pay different rates on different slices of your quota. A common shape is 8% up to quota, 12% to 150%, and 15% beyond. The calculator applies each rate only to the slice of sales inside its band, so you can see exactly how much the accelerator is worth in a breakout year.
A recoverable draw is an advance against future commission, not extra pay. If your earned commission falls short of the advances, the balance is owed back. The draw row shows that balance, and the per-hour figure divides your commission by hours worked so you can compare sales pay against an hourly offer.
FAQ
Questions, answered
How is OTE calculated?
OTE (on-target earnings) = base salary + commission at 100% quota attainment + target bonus. For a $60,000 base with a $500,000 quota at 8% commission and a $10,000 bonus, OTE is $60,000 + $40,000 + $10,000 = $110,000.
How do tiered commission rates work?
Each rate applies only to the sales inside its band. At 120% of a $500,000 quota with 8% to quota and 12% beyond, commission is $500,000 × 8% + $100,000 × 12% = $52,000. Rates above quota are called accelerators.
What are typical sales commission rates?
B2B tech and SaaS run 5–20% of contract value (Salesforce), or 15–25% of the quota amount (Bravado). Real estate is typically 5–6% of the sale price split between agents. Only about 28% of sales professionals expect to hit quota, per Salesforce's State of Sales report.
What is a recoverable draw against commission?
A monthly advance, often $2,000–$4,000, paid against future commission. It guarantees cash flow while you ramp up, but if your earned commission is less than the advances, you owe the difference back. Non-recoverable draws do not have to be repaid.