What is OTE?
OTE (on-target earnings) is the total compensation you earn if you hit 100% of your quota. It is almost always two pieces: a fixed base salary and a target variable (commission) that you hit at full quota. When a job ad says “$60k base, $90k OTE,” it means $60k is guaranteed and the other $30k is the commission you earn at 100% attainment.
How the split works
Commission plans are described by their base-to-target split. A 50/50 plan pays half your OTE as base and half as variable. A 60/40 plan pays more as base and less as variable — lower upside, but a lower floor if you miss quota. SDR roles skew toward 60/40 to 70/30 (more guaranteed, because the role is earlier in the career); quota-carrying AE roles — in B2B the AE is the closer — skew toward 50/50 or more variable.
To compute the target commission from a rate: target commission = quota × commission rate. So a $300,000 quota at 10% pays $30,000 at 100% attainment, and a $60,000 base gives $90,000 OTE. That matches the OTE the recruiter quotes — this calculator reproduces exactly that math.
OTE is not your salary
OTE is the on-target case, not the guarantee. If you close 80% of quota you earn below OTE; if you exceed quota (most plans pay accelerators above 100%) you can earn well above it. When you compare offers, compare on three numbers, not one: the base, the OTE, and the commission structure (rate, quota, accelerators, and a cap — some plans cap upside). Two $90k OTE roles can differ hugely in how much is guaranteed.
Use it in negotiation
When you get an offer, ask for the full plan in writing before negotiating: base, OTE, quota, rate, ramp, and whether commission is paid on closed revenue or on signings. The two levers that most affect your real cash — and that candidates routinely forget to push on — are the base-to-OTE split (a higher base is worth more than it looks) and the ramp (whether you are protected while you build your pipeline in months 1–3). Negotiate the base up or the ramp in; the OTE number is often less flexible than the structure around it.