Sales compensation calculator

ROLE
ON-TARGET EARNINGS (OTE)
BASE / VARIABLE SPLIT 50 / 50 more baseband 45–55% variablemore variable
ANNUAL QUOTA $750K 3× OTEhealthy 4–6×8× OTE
SDR VARIABLE PAYS ON
QUALIFIED MEETINGS / MONTH Healthy band 10–18 / month.
SOURCED PIPELINE / YEAR
RAMP TO FULL QUOTA 5 mo 1 motypical 4–69 mo
ACCELERATOR ABOVE 100% 1.5× 1.0× flatcommon 1.5–3×3.0×
DECELERATOR — NO PAY BELOW off offcommon floor 40–50%60%
ATTAINMENT (SCENARIO) 100% 0%the number below moves with this200%
AT 100% ATTAINMENT, THIS PLAN PAYS $150,000

Full plan — base plus the whole variable.

ARITHMETIC ON YOUR INPUTS · NOT A BENCHMARK
EFFECTIVE COMMISSION RATE 10% variable ÷ quota — what you earn per $1 closed at target
BASE / VARIABLE $75K / $75K the fixed half you keep, and the half you earn
WHAT HITTING PLAN TAKES

Readings how your plan sits against the US benchmark bands

Test it on your own pipeline

From your pipeline, win rate and cycle — not a forecast, a simulation.

AVERAGE DEAL (ACV)
SALES CYCLE (DAYS)
WIN RATE 22%
CURRENT OPEN PIPELINE

How to set this up properly

Setting up comp is easy. Setting it up so you’re not chasing it for two years is the hard part.

01 ELIGIBILITY

What are you optimising first?

New logos, expansion, or PLG assist — pick one. Reward the behaviour that matters this year, not all of them at once.

02 PAY LEVELS

Pay levels, and the caveats

OTE decides who you can hire; the split decides how much risk the rep carries. Get the level wrong and no mechanic saves it.

03 MECHANICS & PAY CURVE

The curve is where plans leak

Sandbagging, slow ramps, a whale that blows the quarter — each has a fix, and each fix has a side effect.

04 QUOTAS & TARGETS

Most misses aren’t performance

Before you blame the reps, check the quota: built from capacity and territory, or last-year-plus-ten?

05 SPECIAL INCENTIVES

SPIFs: patch or experiment?

A spiff patches a hole the plan should cover, or tests one clear hypothesis. Anything else just makes the plan unreadable.

06 REVIEW CADENCE

You will be chasing it

You’ll get it right in about two years — by then the motion has moved. Review every quarter, not every year.

Questions

Reps and managers ask different things. Both are here.

FOR SALES REPS

What’s a good commission rate for me?

For an AE, your effective rate is your variable pay divided by your quota — typically 8–12% of what you close at target in US SaaS. Above that is generous; below it, you’re carrying a lot of quota per dollar of upside. Use the calculator to see your own number and where it sits against the band.

How can I get more predictability on what I’ll make?

Predictability comes from knowing three things early: your live attainment, what your open pipeline is likely to close, and how the curve pays it. The deeper mode here estimates your next quarter from your pipeline, win rate and cycle — the same math your comp team runs, but in your hands, now.

How can I audit my own statements?

Recompute it yourself: base + variable × the payout multiple at your attainment, plus any accelerators above 100%. If your statement and your own math disagree, that gap is worth a conversation. Most disputes are a mislabelled deal or a stage that didn’t sync — not the rate.

What’s a normal ramp schedule?

Most SaaS AEs take 4–6 months to full quota; SDRs 2–4. A good plan gives quota relief across the ramp instead of dropping you at full number on day one — the schedule in the calculator shows a typical shape.

FOR MANAGERS

How can I spend less time auditing commissions?

The time goes into assembling a clean file — reconciling CRM, billing and the plan by hand every cycle. That reconciliation is exactly what Pharo automates: the audited, commission-ready file exists before the run, so review is a spot-check, not a rebuild.

How can I see what my team will earn before final statements?

By running attainment and pipeline forward instead of waiting for the close. That’s the deeper mode here for one rep; with your data wired in, Pharo does it continuously across the team, so there are no month-end surprises.

How often should I review comp and quotas?

Quarterly against real attainment, with a fuller reset annually. Anything slower and the plan is optimising for a motion you no longer run. The blocker is usually effort, not will — which is the argument for making the data cheap to look at.

Should we run a commission-only model?

Rarely, and only for genuinely transactional, high-velocity motions with short ramps. For anything with a real cycle, commission-only pushes so much risk onto reps that you lose the ones you most want to keep. A base is retention insurance.

Should I implement a quota-relief program?

Yes during ramp, and case-by-case for territory changes or leave — it protects good reps from setup they didn’t cause. The discipline is writing down when relief applies before the quarter, so it’s a policy, not a negotiation.

Should I implement clawback policies?

A short clawback window on early churn (say 90 days) aligns reps to deals that stick, and is standard. Make the trigger and the recovery mechanism explicit in the plan — vague clawbacks are the fastest way to lose trust in the whole document.

The numbers here are arithmetic on the inputs you provide and published US SaaS benchmark bands (named where they appear). They’re a simulation to think with, not comp advice or a guarantee of pay.

Want us to go deeper, on your actual numbers?

This is a simulation. Book thirty minutes and we’ll run it on your real data.