Enter the base salary ($) and the on-target commission ($) into the On-Target Earnings (OTE) Calculator. The calculator will evaluate the On-Target Earnings (OTE). 

On-Target Earnings (OTE) Formula

The following two example problems outline the steps and information needed to calculate the On-Target Earnings (OTE).

OTE = BS + OTC

Variables:

  • OTE is the On-Target Earnings (OTE) ($/year)
  • BS is the base salary ($) 
  • OTC is the on-target commission ($) 

To calculate on-target earnings (OTE), add together the base salary and the on-target commission.

How to Calculate On-Target Earnings (OTE)?

The following steps outline how to calculate the On-Target Earnings (OTE).

  1. First, determine the base salary ($). 
  2. Next, determine the on-target commission ($). 
  3. Next, gather the formula from above = OTE = BS + OTC.
  4. Finally, calculate the On-Target Earnings (OTE).
  5. After inserting the variables and calculating the result, check your answer with the calculator above.

Example Problem : 

Use the following variables as an example problem to test your knowledge.

base salary ($) = 75,000

on-target commission ($) = 40,000

OTE = BS + OTC = ?