How do I calculate my sales commission?

Multiply your total sales by your commission rate. For example, if you closed $100,000 in sales at a 10% commission rate, your commission is $10,000. For plans with accelerators, sales above the threshold earn at the accelerated rate (base rate × multiplier).

What is OTE (On-Target Earnings) and how is it calculated?

OTE is your total expected compensation when you hit 100% of quota. It's calculated as: Base Salary + (Quota × Commission Rate). For example, with a $60,000 base, $500,000 quota, and 10% commission rate, your OTE is $60,000 + $50,000 = $110,000.

How do accelerators affect my commission?

Accelerators increase your commission rate when you exceed quota. A 1.5x accelerator at 100%+ attainment means your 10% rate becomes 15% on all sales above quota. This is where top performers significantly out-earn their OTE.

What's a typical sales commission rate?

Commission rates vary by role and industry. SDRs typically earn 2-5%. Account Executives average 8-12% on new business. Account Managers see 5-8% on renewals and 10-15% on expansion. SaaS companies often pay higher rates (10-20%) due to recurring revenue value.

Should I negotiate for higher base or higher commission?

It depends on your confidence and risk tolerance. Higher base provides stability; higher commission rewards overperformance. Top performers often prefer lower base/higher commission. Our AI agent can analyze your specific situation.

What is a typical base/variable split?

Most sales roles have a 50/50 to 60/40 base/variable split. SDR roles tend to be 60/40 or 70/30 (higher base), while pure closing roles may be 50/50 or even 40/60 for experienced AEs.

How do I calculate commission on recurring revenue (MRR/ARR)?

SaaS commissions on recurring revenue typically pay on first-year ACV (Annual Contract Value). For example, 10% on a $50K ARR deal = $5K commission. Some plans pay on MRR monthly or include renewal/expansion kickers.

What percentage of sales reps hit quota?

Industry data shows only about 58% of sales reps hit quota in a typical year. Top quartile performers often earn 150-200%+ of their OTE through accelerators.

Sales Commission Calculator

Calculate sales commissions instantly. Supports base + commission, accelerators, and OTE calculations. Compare earnings at different quota attainment levels.

Enter Your Values

Base Salary (Annual)*

Your fixed annual salary before commission

Total Sales / Bookings*

Total value of deals closed in the period

Quota*

Your sales target for the period

Commission Rate*

Your commission percentage on sales

Accelerator Threshold

Quota attainment % where accelerator kicks in (e.g., 100)

Accelerator Multiplier

Rate multiplier above threshold (e.g., 1.5 = 1.5x commission)

Formula

Commission = Sales × Rate (with accelerator on quota overperformance)

Commission is calculated on your total sales. If you exceed the accelerator threshold, sales above that point earn at the accelerated rate (base rate × multiplier). Total compensation = Base Salary + Commission.

Total Commission Earned$50,000

100% of quota — Great job hitting and exceeding target!

Total Compensation$110,000

Quota Attainment100.0%

On-Target Earnings (OTE)$110,000

OTE Achievement100.0%

Effective Commission Rate10.0%

Monthly Take-Home$9,167

Earnings at 75% Quota$97,500

Earnings at 100% Quota$110,000

Earnings at 125% Quota$128,750

Earnings at 150% Quota$147,500

Sales Compensation Benchmarks

Below QuotaBelow 75% quota — Focus on pipeline and conversion

$0 – $75

Near Quota75-99% quota — Push to hit target

$75 – $100

At Quota100-125% quota — Strong performance, earning accelerators

$100 – $125

Top Performer125%+ quota — Elite performer, maximizing accelerators

> $125

Source: Sales Compensation Benchmarks 2024

How to Calculate Sales Commission

Enter your annual base salary
Enter your total sales or bookings for the period
Enter your quota (sales target)
Enter your commission rate as a percentage
Optionally add accelerator threshold and multiplier for overperformance bonuses
View your total commission, OTE achievement, and earnings projections
Compare your earnings at different quota attainment levels
Chat with our AI Sales Analyst for comp plan analysis and negotiation tips

Sales Compensation Benchmarks

$75,000 - $95,000

Average SDR OTE

$120,000 - $150,000

Average AE OTE (SMB)

$150,000 - $200,000

Average AE OTE (Mid-Market)

$200,000 - $300,000+

Average AE OTE (Enterprise)

50/50 to 60/40

Typical Base/Variable Split

1.25x - 1.5x

Common Accelerator at 100%+

58% of reps hit quota

Average Quota Attainment

150% - 200%+ of OTE

Top Performer Earnings vs OTE

Source: Sales Compensation Benchmarks 2024

Sales Commission Calculator

Sales Compensation Benchmarks

How to Calculate Sales Commission

Sales Compensation Benchmarks

Frequently Asked Questions

How do I calculate my sales commission?

What is OTE (On-Target Earnings) and how is it calculated?

How do accelerators affect my commission?

What's a typical sales commission rate?

Should I negotiate for higher base or higher commission?

What is a typical base/variable split?

How do I calculate commission on recurring revenue (MRR/ARR)?

What percentage of sales reps hit quota?