The two plans
Plan A
Plan B
Ask the employer what share of reps finished last year at or above 100% of quota, and use that to set your expected attainment. Leave a field at 0 if the plan has no such term.
Edit the plans, then click Compare.
Result
| Quota attainment | Plan A | Plan B | A minus B |
|---|
How it is calculated
Commission at attainment a (1 = 100% of quota) is zero below the threshold. At or above it, commission is target variable × (min(a, 1) + accelerator × max(0, a − 1)), limited by the cap if there is one. Annual pay is base salary plus commission. In the first-12-months view the ramp months pay target variable regardless of attainment, the other months pay commission at your attainment, and the signing bonus is added. The commission rate is target variable divided by quota, so quota itself is not needed.
Not modelled: taxes, benefits, equity, quota size and territory quality, clawbacks and chargebacks, repayable draws, renewal versus new-business rates, split credit, and monthly or quarterly threshold rules. Unverified: checked by hand calculation and unit tests only; compare the numbers with the plan document before you rely on them.
Common questions
What is on-target earnings (OTE) and why is it not enough to compare offers?
OTE is base salary plus the variable pay you earn if you hit 100% of quota. It says nothing about what you earn at 60% or 130%, and plans differ most away from 100%: thresholds, caps, accelerators and ramp guarantees all change the shape of the pay curve. Two offers with the same OTE can pay very differently at the attainment you actually land.
What attainment should I expect?
Ask the employer what share of reps finished the last year at or above 100% of quota, and at 50% and 75%. Many companies set quotas that only some reps reach, so an OTE that assumes 100% can overstate typical pay. The default here is 70% of quota; replace it with the figure you are told or can defend.
How does the commission threshold work in this calculator?
If your attainment is below the threshold, commission is zero and you earn base salary only. At or above the threshold, commission is paid from the first dollar of quota, not only on the part above it. Some real plans differ (for example paying only above the threshold, or applying it monthly), so check the plan document.
What does the accelerator multiple mean?
It multiplies the commission rate on bookings above 100% of quota. 1 means no accelerator, 1.5 pays one and a half times the normal rate above quota, and a number below 1 is a decelerator. The rate itself is your target variable divided by quota, so you do not need to enter quota.
How is the cap modelled?
A cap is entered as a multiple of target variable. A cap of 2 means commission cannot exceed twice your target variable, and the tool shows the attainment at which the cap starts to bind. Enter 0 for no cap.
What is the difference between steady-state and first-year pay?
Steady-state pay is a full year of the plan at the attainment you enter. First-year pay adds the signing bonus and treats the ramp months as guaranteed target variable, with the rest of the year paid at your attainment. Use first-year pay when comparing a new-hire offer with a ramp or a signing bonus.
What does this leave out?
Taxes, benefits, equity, quota size and territory quality, clawbacks and chargebacks, draws that must be repaid, commission on renewals versus new business, split credit, and plans that pay by product or by quarter. It compares the pay curve you describe, not the job.
Is my compensation data uploaded anywhere?
No. Everything you type stays in this browser tab. There are no accounts, cookies or analytics vendors.