On-Target Earnings (OTE) Calculator

Calculate On-Target Earnings (OTE)



Formula

The formula to calculate On-Target Earnings (OTE) is:

\[ \text{OTE} = \text{BS} + \text{OTC} \]

Where:

What is On-Target Earnings (OTE)?

On-Target Earnings (OTE) represent the total annual earnings an employee can expect to earn if they hit their performance targets. It is the sum of the base salary and the on-target commission.

Example Calculation

Let's consider an example:

Using the formula to calculate the On-Target Earnings (OTE):

\[ \text{OTE} = 60000 + 20000 = 80000 \, \text{\$/year} \]

This demonstrates that with a base salary of $60,000 per year and an on-target commission of $20,000 per year, the OTE would be $80,000 per year.