You enter your total sales, base commission rate, optional base salary, a bonus threshold, and a bonus rate. The tool multiplies total sales by the commission rate for the base commission. If sales exceed the threshold, it applies the bonus rate to the overage. It then adds base salary, commission, and bonus for total earnings and divides variable pay by sales for the effective rate. It models a simple flat + threshold-bonus structure — tiered, draw, or gross-margin-based plans may differ.
It varies widely by industry. Real estate agents typically earn 2.5–3% of the sale price. SaaS sales reps often earn 8–12% of annual contract value. Retail and insurance may range from 1–15% depending on the product and margin.
A bonus threshold (sometimes called an accelerator) kicks in when you exceed a target. Sales below the threshold earn the base rate; sales above it earn a higher bonus rate on the overage. It's designed to incentivize above-quota performance.
OTE (On-Target Earnings) is what you'd earn if you hit 100% of quota. This calculator shows what you actually earn at whatever sales level you enter — which could be above or below quota. Compare the two to see how you're tracking.
No. Recoverable draws (advances against future commission), clawbacks for refunded deals, split commissions, and gross-margin adjustments are not modeled. Check your plan document for these details.
Estimate only. Results reflect your inputs and standard formulas. Double-check important decisions independently.