OTE Calculator

OTE (on-target earnings) is base salary plus the commission a rep earns at 100% of quota. Enter an OTE, the base-to-variable split and the quota to see the commission rate it implies, what the rep earns at any attainment, and what the role costs you with employer National Insurance. It all runs in your browser.

How to read the numbers

The commission rate is the variable part of the OTE divided by the quota: it is the rate that pays exactly the on-target variable when the rep hits exactly 100%. Change the attainment to see how pay moves either side of target, and the accelerator to see what over-attainment costs.

The employer cost adds secondary Class 1 National Insurance at 15% on earnings above £5,000 (2026/27). It leaves out employer pension contributions, benefits and the Employment Allowance, so treat it as a floor. For the full picture, see what OTE means and how to set it, the employer NIC cost of commission and how to design accelerators.

Frequently asked questions

What does OTE mean?

OTE stands for on-target earnings: the base salary plus the commission or bonus a sales rep earns if they hit exactly 100% of their quota. A £70,000 OTE on a 60/40 split is £42,000 base and £28,000 variable at target. It is neither a guarantee nor a cap: missing quota pays less, beating it pays more.

How do you work out the commission rate from an OTE?

Divide the variable part of the OTE by the annual quota. A £28,000 variable on a £400,000 quota is a 7% commission rate, so a rep who closes exactly £400,000 earns the full £28,000.

What is a typical UK base-to-variable split?

Common UK splits run from 70/30 to 50/50 base to variable. Roles where the rep controls more of the outcome, such as new-business account executives, usually carry more variable; SDRs and account managers usually carry less.

How much does an OTE cost the employer?

More than the OTE itself. Employers pay secondary Class 1 National Insurance at 15% on annual earnings above £5,000 in 2026/27, so a £70,000 OTE paid at target costs £79,750 before employer pension contributions and benefits.

What is a good cost of sale for OTE against quota?

Many B2B teams aim for OTE at roughly 15–25% of the rep's annual quota. A £70,000 OTE against a £400,000 quota is 17.5%. Much above that and the role is expensive relative to what it brings in; much below and the quota may be unrealistic.

Is this OTE calculator free?

Yes. It runs entirely in your browser, needs no sign-up, and nothing you type is sent anywhere.