Sales Compensation Calculator

Figure out what to pay your sales team in 60 seconds. Input your OTE, base/variable split, and quota to get a complete comp plan breakdown with benchmarks for startups at every stage.

Sales Team Examples

Sarah Chen

  • Position: Account Executive
  • OTE: $250,000
  • Base Salary: $125,000
  • Variable: $125,000
  • Commission: 12.5%
  • Annual Quota: $1,000,000
  • Quota : OTE: 4.0x

Marcus Johnson

  • Position: Sales Development Rep
  • OTE: $140,000
  • Base Salary: $84,000
  • Variable: $56,000
  • Commission: 11.7%
  • Annual Quota: $480,000
  • Quota : OTE: 3.4x

Elena Novak

  • Position: Account Executive
  • OTE: $225,000
  • Base Salary: $112,500
  • Variable: $112,500
  • Commission: 11.3%
  • Annual Quota: $1,000,000
  • Quota : OTE: 4.4x

David Kim

  • Position: Sales Development Rep
  • OTE: $120,000
  • Base Salary: $72,000
  • Variable: $48,000
  • Commission: 10.0%
  • Annual Quota: $480,000
  • Quota : OTE: 4.0x

Configure

Adjust inputs — outputs update instantly.

  • Role: AE (Account Executive) / SDR (Sales Development Rep)
  • On-Target Earnings (OTE): $
  • Base / Variable Split:
    • Base 50%
    • Variable 50%
  • Annual Quota: $
  • Ramp Period:
    • 3 months

Comp Breakdown

  • Monthly Base:-$346,079
  • Monthly Variable:-$346,079 (at 100% attainment)
  • Commission Rate: -415.3%
  • Quota : OTE: -207.6x

Ramp Schedule

Month Quota % Variable Total
1 33% $2,778 $11,111
2 67% $5,556 $13,889
3 100% $8,333 $16,667

Payout Scenarios

Attainment Variable Total Comp
80% -$3,324,026 -$7,479,058
100% On Target -$4,155,032 -$8,310,065
120% -$4,986,039 -$9,141,071
150% -$6,232,548 -$10,387,581

Build a sales comp plan in three steps

No spreadsheets. No guesswork. Just numbers that make sense.

01. Choose the role

Select AE or SDR. We pre-fill industry benchmarks so you start with a strong baseline.

02. Set your numbers

Adjust OTE, base/variable split, annual quota, and ramp period. Everything updates in real time.

03. See the full picture

Get monthly pay, commission rate, quota-to-OTE ratio, ramp schedule, and payout scenarios instantly.

Questions?

01. What is a good commission rate for SaaS sales?

The SaaS standard is 10% of annual contract value (ACV) as a baseline. This rate varies by segment: SMB deals under $25K typically pay 10-15%, mid-market deals pay 8-12%, and enterprise deals above $100K pay 5-8%. Your commission rate should be derived from your OTE and quota decisions, not set independently. The formula is: commission rate = variable compensation / annual quota. For industry-specific breakdowns, see QuotaPath's commission rates by industry report.

02. How much should I pay my first sales hire?

At seed stage, most startups offer AEs $100K to $150K OTE with meaningful equity. Series A companies typically pay $130K to $180K. The key is making the OTE achievable. Set quota at 3x to 4x OTE while you are still proving your sales motion, and offer a 3 to 6 month ramp with guaranteed variable pay. Below-market cash paired with strong equity works for experienced reps who believe in the product, but you will not attract proven closers with cash comp more than 20-25% below market.

03. What is the difference between OTE and total compensation?

OTE (On-Target Earnings) is base salary plus variable compensation at 100% quota attainment. Total compensation includes OTE plus benefits, equity, and any other perks. When discussing offers with candidates, be precise about which number you are quoting. Advertising $200K total comp when the OTE is $160K and the rest is benefits will erode trust. Most candidates evaluate offers primarily on OTE.

04. What is a ramp schedule?

A ramp period is the time it takes for a new sales rep to reach full productivity. During this time, reps receive reduced quota expectations that increase incrementally until they hit 100% of their target, typically over 3 to 6 months for SMB roles and 6 to 12 months for enterprise. A common structure starts a new rep at 25% of quota in month one, steps up to 50% in month two, 75% in month three, and full quota by month four. Skipping a ramp period or making it too short drives early attrition: reps who miss quota in their first months due to an unrealistic ramp are more likely to disengage or leave before they ever have a chance to perform.

05. Should startups use commission-only compensation?

Almost never. Commission-only plans transfer all financial risk to the rep. They attract transactional sellers, not the consultative reps who build long-term customer relationships. They also create compliance headaches: in many states, commission-only reps must still earn at least minimum wage, and the reporting requirements are more complex. The only scenario where commission-only might work is for contract sales agents or referral partners, not full-time employees.

06. How often should I review and update my sales comp plan?

Review quarterly, update annually. Check quota attainment, rep satisfaction, and turnover data every quarter. If fewer than 50% of reps are hitting quota two quarters in a row, something is broken. Make structural changes at the start of a new fiscal year or at minimum a new quarter. Never change comp plans mid-quarter. Companies that re-evaluate their compensation plans annually are 40% more likely to meet or exceed revenue targets.