# 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](https://www.quotapath.com/blog/commission-rates-by-industry/).

### 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.