ABCDEFGHIJKLMNOPQRSTUVWXYZ
1
The Sales Comp Math: Calculator
2
The Business of People. Change the inputs and watch quota, deals, and quota:OTE move.
3
4
How to use:
Edit the blue cells with yellow fill. Everything else is a formula. Plans A and B match the newsletter graphic.
5
6
Plan APlan BYour planHow it's calculated
7
INPUTS
8
On-target earnings (OTE)$160,000$160,000$150,000Total pay at 100% of quota. Held constant in the graphic.
9
Base as % of OTE50%60%55%The pay mix. 0.5 = 50/50, 0.6 = 60/40.
10
Commission rate10.0%10.0%9.0%Commission paid per $1 of bookings.
11
Average contract value (ACV)$20,000$20,000$20,000Mid-market AE example: $20K.
12
Attainment to test100%100%80%What the rep actually closes vs. quota. 100% = on target.
13
14
RESULTS AT TARGET
15
Base salary$80,000$96,000$82,500OTE × base %
16
Variable at target$80,000$64,000$67,500OTE − base
17
Pay mix (base / variable)50 / 5060 / 4055 / 45For reference
18
Annual quota$800,000$640,000$750,000Variable ÷ commission rate
19
Deals per year40.032.037.5Quota ÷ ACV
20
Deals per month3.32.73.1Deals per year ÷ 12
21
Quota : OTE ratio5.0x4.0x5.0x
Quota ÷ OTE. Many SaaS teams use ~4-5x as a rule of thumb.
22
23
AT TESTED ATTAINMENT
24
Bookings closed$800,000$640,000$600,000Quota × attainment
25
Commission earned$80,000$64,000$54,000Bookings × rate (flat rate, no accelerators or caps)
26
Total earnings$160,000$160,000$136,500Base + commission
27
Earnings as % of OTE100.0%100.0%91.0%Shows how much of the downside the base absorbs
28
29
Illustrative example only. Not a benchmark. Assumes a flat commission rate with no accelerators, decelerators, caps, or ramp.
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100