On-target earnings (OTE) is the total pay a salesperson receives for meeting a sales target in full: the base salary plus the variable pay, usually commission or bonus, paid at 100 percent of target. Employers quote it in job adverts, so it states what a role pays at target, not what any individual earns.
Reading an OTE figure
Split the figure into its two parts before comparing it. Acme Robotics (illustrative) advertises an account executive at 150,000 US dollars OTE with a 50/50 split: 75,000 base and 75,000 variable at target. A second role at the same OTE with a 70/30 split pays 105,000 base and 45,000 variable. The headline numbers match and the jobs do not: the first carries more risk and more upside. Quota, ramp period and any cap on commission change what the figure is worth.
Common mistakes
- Reading OTE as earnings. It assumes full attainment. Realised pay depends on results that an advert cannot show, and an uncapped plan can pay above OTE.
- Mixing periods and currencies. A monthly OTE read as annual, or pounds set beside dollars, produces gaps that are not real. Convert to one currency and one period first.
- Treating a salary range as OTE. A range with no variable pay stated is base pay, and setting it beside another role's OTE compares unlike things.
OTE in Fokals data
In Fokals hiring data, pay terms are read from the posting text. Where a sales posting states them, Job Postings records the OTE and the base as written, each as a yearly US-dollar midpoint, with the base share (0.5 for a 50/50 split), whether commission is uncapped and the quota. Sales Team Metrics gives each company's median base and median OTE by role for each week, counting a plain salary range as base when no OTE is stated. Sales Pay Benchmarks gives the lower quartile, median and upper quartile of OTE per week, role and country, for groups of at least five postings.
Every figure is advertised pay: what the employer states for the role at target. The hiring dataset holds the tables, and the guide to benchmarking sales compensation shows how to read the quartiles.
Related terms
OTE is read with the seniority level and job function of the role. See also hiring data.
Frequently asked questions
What does OTE mean in a job advert?
OTE stands for on-target earnings. It is the pay a role offers if the employee meets their sales target in full: the guaranteed base salary plus the variable pay, such as commission, that is paid at target. A role advertised at 120,000 OTE does not guarantee 120,000. Look for the base figure and the split, because the base is the part you can count on.
How is OTE calculated?
Add the base salary to the variable pay due at 100 percent of target. If Acme Robotics (illustrative) sets a base of 80,000, a quota of 800,000 and a commission rate of 7.5 percent, commission at quota is 60,000 and OTE is 140,000. Where an advert gives only OTE and a split, work backwards: a 60/40 split of 140,000 gives 84,000 base and 56,000 variable.
Is OTE guaranteed?
No. Only the base salary is guaranteed. The variable part is paid as the target is reached, so it can fall short of the figure or, where commission is uncapped, exceed it. Some employers guarantee part of the variable pay for the first months while a new hire ramps up. Check the plan document for the quota, the ramp period and any cap before treating OTE as income.