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# 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.

## Compensation Data

### Account Executives

| Name          | OTE       | Base Salary | Variable | Commission | Annual Quota | Quota : OTE |
|---------------|-----------|-------------|----------|------------|--------------|-------------|
| Sarah Chen    | $250,000  | $125,000    | $125,000 | 12.5%      | $1,000,000   | 4.0x        |
| Elena Novak    | $225,000  | $112,500    | $112,500 | 11.3%      | $1,000,000   | 4.4x        |

### Sales Development Reps

| Name          | OTE       | Base Salary | Variable | Commission | Annual Quota | Quota : OTE |
|---------------|-----------|-------------|----------|------------|--------------|-------------|
| Marcus Johnson | $140,000  | $84,000     | $56,000  | 11.7%      | $480,000     | 3.4x        |
| David Kim      | $120,000  | $72,000     | $48,000  | 10.0%      | $480,000     | 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:** -$425,718  
- **Monthly Variable:** -$425,718 at 100% attainment  
- **Commission Rate:** -510.9%  
- **Quota : OTE:** -255.4x

### 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%       | -$4,087,849 | -$9,197,660 |
| 100% On Target | -$5,109,811 | -$10,219,622 |
| 120%      | -$6,131,773 | -$11,241,585 |
| 150%      | -$7,664,717 | -$12,774,528 |

## Build a Sales Comp Plan in Three Steps

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

1. **Choose the Role**  
   Select AE or SDR. We pre-fill industry benchmarks so you start with a strong baseline.

2. **Set Your Numbers**  
   Adjust OTE, base/variable split, annual quota, and ramp period. Everything updates in real time.

3. **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.

### 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.

### 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.

### 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.

### 05. Should startups use commission-only compensation?

Almost never. Commission-only plans transfer all financial risk to the rep. They attract transactional sellers, not consultative reps who build long-term customer relationships.

### 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.
