What is OTE in sales?
OTE means on-target earnings: base salary plus the commission you earn at 100% of quota. Here's how it works, with live numbers from 1,547 US tech sales postings that list pay. Updated 2026-10-17.
OTE in one line
OTE = base salary + target variable pay. If a role pays $80k base and $80k commission at 100% of quota, the OTE is $160k and the split is 50/50. Only the base is guaranteed.
- Base is the fixed salary you get regardless of results.
- Variable is commission or bonus tied to quota. Hit 100% and you earn the full target.
- Split is the base-to-variable ratio, written like 50/50 or 70/30.
- Accelerators raise your commission rate after 100% of quota, so top performers can earn well above OTE.
OTE vs base by role, right now
Median of the posted range in current US postings. OTE column uses postings that state on-target earnings; base column uses postings that quote base only (count in brackets). They come from different postings, so they show the typical level of each, not the exact split of any single role.
| Role | Median OTE | Median base |
|---|---|---|
| Account Executive | $210k (315) | $135k (530) |
| SDR / BDR | $81k (53) | $64k (58) |
| Sales Engineer | $180k (171) | $172k (171) |
| Sales Manager | $190k (47) | $161k (49) |
| VP / Director of Sales | $265k (64) | $213k (89) |
42% of US postings with pay state it as OTE. The rest quote base only.
OTE calculator
Enter base and OTE to see your split and what you'd earn at different quota attainment.
How to judge an OTE offer
- Quota attainment. If only 30% of the team hits plan, the realistic number is closer to base plus a third of the variable.
- Quota size. Compare quota to OTE. A quota of 4–6x OTE is common for AEs.
- Caps and accelerators. Uncapped commission with accelerators past 100% is the strongest structure.
- Ramp and draw. Ask how many months of reduced quota or guaranteed pay you get while you build pipeline.
- Payout timing. Monthly payouts are friendlier than quarterly; check clawback rules.
Highest stated OTE right now
Top 100 highest-paying sales jobs → · Weekly sales pay report →
FAQ
What does OTE mean in sales?
OTE stands for on-target earnings: your base salary plus the commission or bonus you earn if you hit 100% of your quota over a year. A $150k OTE with a 50/50 split means $75k base and $75k target commission.
Is OTE guaranteed?
No. Only the base salary is guaranteed. The variable part depends on hitting quota, so real earnings can be well below OTE (missed quota) or above it (accelerators past 100%). Ask what share of the team hit quota last year.
What is the difference between OTE and base salary?
Base salary is the fixed part you're paid no matter what. OTE is base plus target variable pay. Job postings that list one number without saying OTE are usually quoting base, which is why OTE Jobs labels every range as OTE or base.
What is a typical OTE split?
Account Executive roles are most often 50/50 (half base, half commission). SDR/BDR roles are usually 60/40 to 70/30, Sales Engineers 70/30 to 80/20, and sales managers and leaders 60/40 to 70/30. Higher variable share means more upside and more risk.
What is a good OTE for an Account Executive in 2026?
Across 315 current US AE postings that state OTE, the median is $210k, as of 2026-10-17. Enterprise and AI-company AE roles often post $250k–$400k OTE.
What is a good OTE for an SDR or BDR in 2026?
The median stated OTE across 53 current US SDR/BDR postings is $81k, as of 2026-10-17. Most land between $70k and $110k.
How is OTE commission paid out?
Usually monthly or quarterly, based on bookings or revenue you close against a quota. Many plans add accelerators (a higher rate after 100%), and some cap earnings. New hires often get a ramp period with a reduced quota or a guaranteed draw.
What should I ask about an OTE offer?
Ask five things: what percent of reps hit quota last year, how the quota was set, whether commission is capped, what the accelerators are above 100%, and what the ramp or draw looks like in your first months.