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 (\$)

## 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 = ?