On-Target Earnings (OTE) Calculator

Formula

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

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

Where:

$ \text{OTE} $ is the On-Target Earnings (in $/year)
$ \text{BS} $ is the Base Salary (in $/year)
$ \text{OTC} $ is the On-Target Commission (in $/year)

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:

Base Salary (BS): $60,000/year
On-Target Commission (OTC): $20,000/year

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.