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Lab
Base, variable pay, quota, and an accelerator, turned into expected annual pay.
Monthly gross $13,333.33. Commission $80,000.00. On-target variable $80,000.00 on a base of $80,000.00.
Effective commission rate 10% of quota.
| Attainment | Commission | Total |
|---|---|---|
| 50% | $40,000.00 | $120,000.00 |
| 75% | $60,000.00 | $140,000.00 |
| 100% | $80,000.00 | $160,000.00 |
| 125% | $100,000.00 | $180,000.00 |
| 150% | $120,000.00 | $200,000.00 |
Still Building
On-target earnings are base plus the variable paid at 100% of quota. In OTE mode, the base share is the percent of OTE that is base. The rest is variable.
At or below the floor, commission is zero. Between the floor and 100%, commission rises in a straight line to the full variable. Above 100%, extra attainment is paid at the plan rate times the accelerator. An accelerator of 1.5 pays one and a half times the plan rate on the portion above quota. A cap limits commission after that math.
Effective commission rate is commission divided by quota. Monthly gross is annual pay divided by 12. The table repeats the same formula at 50, 75, 100, 125, and 150% attainment.
Draws, SPIFs, team quotas, and clawbacks are not in the formula. The result bucket is the attainment band: under 75, 75 to 99, 100 to 124, or 125 and above.