Sales Compensation Plan Template and Generator for B2B Sales Teams

A sales compensation plan does more than calculate pay. It tells every rep which deals, accounts and activities are worth their time.

That is why small design choices can create large, unintended consequences. A higher commission on new business can pull attention away from renewals. An aggressive threshold can make solid performers feel that part of their work does not count. An unrealistic quota can turn an accelerator into a line that nobody ever reaches.

If you're a sales manager, your goal is to build a comp plan that rewards the behaviors you actually want. With the Sales Compensation Plan Generator above, you can create an individual compensation plan, in minutes, for each member of your team. The calculator instantly models what that rep would earn from 0% to 300% quota attainment on each target, so you can validate the plan before it ever goes live.

Once you're happy with the result, simply share the plan with your rep. They'll get a personalized, read-only calculator where they can move their own attainment slider and instantly see how much they'll earn at any performance level, without being able to modify the compensation plan itself.

The guide below explains how to design a compensation plan that motivates the right behaviors, rewards performance fairly, and avoids the common mistakes that lead to unrealistic quotas, confusing payout rules, or expensive incentive programs.

Table of Contents

• What Is a Sales Compensation Plan?
• Sales Compensation Plan Template vs. Generator
• How to Design a Sales Compensation Plan in 7 Steps
• Components of a Sales Compensation Plan
• Types of Sales Compensation Plans
• How to Choose the Right Plan Structure
• Sales Compensation Plan Examples by Role
• How Plan Design Changes by Sales Motion
• How to Set Base Pay, Variable Pay, Quota and Commission Rate
• How to Structure Bonuses, Thresholds and Accelerators
• How to Build a New-Hire Ramp
• What the Formal Plan Document Must Specify
• Free Sales Compensation Plan Template
• How to Present and Share the Plan
• Common Design Mistakes
• Formula and Generator Methodology

What Is a Sales Compensation Plan?

A compensation plan is the structure that decides how a rep gets paid based on performance. It pairs a fixed base salary with variable pay tied to results: commission on revenue, a bonus for crossing a threshold, or a fixed amount for each qualified activity. A comp plan pays your reps, and it also points them. The structure is what a rep reads, consciously or not, every morning when they decide where to spend their time.

A good plan answers three questions at once :

• What does the company need this rep to do?
• What does competitive total pay look like for this role in this market?
• What does the rep actually earn at different levels of attainment?

Sales Compensation Plan Template vs. Generator

A template is a document structure, a list of fields you fill in that captures the rules: who the plan covers, what they earn, under what conditions, and how exceptions get handled. The template is what you hand the rep and what HR keeps on file. It exists to be read, signed, and referred back to. Further down in this article, you'll find a free template that you can copy and paste for your team.

Our free Sales Compensation Plan generator is an interactive tool that lets you build the structure and see what it pays at any attainment level, from 0% to 300%, before you commit. You define the rules, it does the math and plots the curve. It does not tell you whether the plan is any good.

How to Design a Sales Compensation Plan in 7 Steps

Step 1. Define the role and what it has to produce. Before you touch a number, write in one sentence what this role exists to do. "Generate pipeline and book qualified meetings for the AE team" or "Close new mid-market ACV". Theses sentences decides which behaviors you pay for and which metrics you want attach money to.

Step 2. Choose the behaviors you want to pay for. Every rule in the plan sends a signal about what the company values. A 12% rate on new business next to a 4% rate on renewals says, plainly, that winning beats keeping. A fixed payout per qualified meeting tells the SDR that pipeline is the job. Before you pick rates and amounts, list the behaviors the plan has to reinforce, in priority order.

Step 3. Set the pay mix. Decide how much of OTE is guaranteed base and how much is performance-dependent variable. The right split depends on how close the role sits to revenue, how predictable the outcomes are, and how much income stability the person in the seat needs to do the job well.

Step 4. Set quota, commission rate, and OTE. The quota should be close from x4 OTE. The median in B2B SaaS is 4.2x. Below 3x, you are probably overpaying for what you are asking. Above 6x, the quota is probably too steep for the money on offer.

Step 5. Add thresholds, accelerators, and bonuses. Add complexity only once the base structure is sound.

• Threshold: If you want to set a threshold for one of the sales targets, it is recommended that you set it between 50% and 60% of the target achievement. Setting it above 80% is almost always counterproductive.
• Accelerators : According to research from Harvard Business School, Darden, and Yale, performance-based compensation generates more than 13% higher revenue and 2% higher profit than fixed-rate plans. The recommended multiplier runs between 1.5x and 2x the base rate, applied to every dollar above quota. A multiplier that is too generous, such as 3x, tends to create swings in attainment from one period to the next, which makes revenue harder to predict.

Keep it simple. Confusion you create costs you more in misdirected effort than the extra rules buy you in performance.

Step 6. Model the plan at several attainment levels. Build the plan in the generator above and read what it pays across the range, from a weak year to a strong one. Earnings have to be survivable at 70%, competitive at 100%, and worth chasing at 130%.

Step 7. Present it and confirm they understood. The plan is finished when the rep can explain it back to you correctly. Share the read-only link so they can run their scenarios.

Components of a Sales Compensation Plan

Base salary. The fixed amount, paid regardless of performance. In B2B sales it usually runs 50 to 70% of OTE for closing roles: closer to 50/50 for AEs with clear revenue accountability, heavier on base for roles with less direct selling like SDRs or CSMs.

Commission objectives. A percentage rate on a revenue stream (new business, upsell, renewals, total revenue, or a custom stream). Each stream can carry its own target and rate. The plan should make it obvious how each stream feeds total earnings, and what happens when a rep hits one and misses the other.

Activity objectives (fixed amount). A flat dollar payout per qualified action: a meeting booked, an opportunity sourced, a demo run. This is the backbone of most SDR plans, where the output is pipeline rather than closed revenue. It pays for what the rep controls instead of outcomes they only partly influence.

Bonus objectives. A lump sum that pays when a condition is crossed: a quota threshold, a logo count, a specific product sold. Bonuses are binary, with no partial credit for coming close. Set the conditions at levels a strong rep can actually reach.

Ramp configuration. A graduated quota and earnings schedule for new hires, covering the gap between start date and full productivity. Ramp length, curve shape, and whether any months carry guaranteed pay decide what a new rep earns in Year 1 against what they will earn once fully ramped.

Accelerators and decelerators. Rate modifiers that change the commission rate above or below set attainment points. Accelerators give top performers a reason to keep closing after they hit quota. Decelerators cut the rate below a floor to protect margin on weak production.

Types of Sales Compensation Plans

Salary only. A fixed base with no variable. Fits sales support, pre-sales, or technical roles where revenue is indirect or impossible to pin on one person. Use it for sales engineers, solution consultants, sales ops. Upside: full income predictability, simple to run. Downside: no financial pull to exceed the minimum.

Commission only. Variable pay with no guaranteed base. Fits independent contractors, channel partners, or high-velocity transactional sales where deals close fast and often. Use it for independent reps, referral agents, partners. Upside: maximum leverage, the rep carries all the performance risk. Downside: high turnover when deal flow gets choppy, and it pushes short-term behavior.

Salary plus commission. The standard for most B2B closing roles. A guaranteed base gives stability, commission ties a real chunk of pay to results. Use it for AEs, BDMs, territory managers, enterprise reps. Upside: balances security and incentive, and it is what candidates expect in B2B. Downside: you have to calibrate the base-to-variable split and the rate carefully.

Tiered commission. The rate climbs at set revenue thresholds. For example, 8% on the first $50K of monthly revenue, 10% from $50K to $100K, 14% above $100K. Fits high-volume transactional roles and SMB sales with a wide spread in performance. Upside: strong pull for top performers, lower blended cost on average production. Downside: harder to explain, and reps can sandbag at tier boundaries.

Activity-based plan. Variable tied to activities rather than revenue. For roles whose output is pipeline, not closed deals. Use it for SDRs and BDRs, or any role where individual revenue attribution is fuzzy. Upside: pays for what the rep controls. Downside: it can reward volume over quality unless you define qualifying criteria tightly.

Bonus-based plan. Variable delivered through bonuses that trigger on milestones: a revenue target, a logo count, a product-mix goal. Fits account management roles built around renewal and expansion. Upside: simple, with a clear line to payout. Downside: binary, no partial credit.

Gross-margin commission. Commission on deal margin rather than deal revenue, so the rep has to care about what they give away. Fits industries with variable cost structures where reps hold pricing authority. Upside: puts rep incentives on the same side as company profit. Downside: harder to calculate, and the rep needs access to margin data.

Team-based compensation. Part of variable tied to team results rather than the individual. Fits overlay roles, large enterprise pursuit teams, or any spot where individual attribution genuinely does not work. Upside: reinforces collaboration where solo credit makes no sense. Downside: free-rider risk, and strong individuals may resent carrying weaker teammates.

How to Choose the Right Plan Structure

There is no universally best structure. The right plan sits at the intersection of five things:

1. how close the role is to revenue
2. how long and complex the sales cycle is
3. how predictable the outcomes are
4. what the company is trying to do strategically
5. the market rate for the role.

Sales Compensation Plan Examples by Role

The examples below show the structural decisions for each role: the pay mix, what each component pays for, and the logic behind it. To model exactly what any of these pays at a given attainment level, use the generator above. Enter the base, streams, and rates, and move the slider in our free Sales Compensation Plan Generator above.

Account Executive (SaaS, Mid-Market)

Full-cycle AE closing new business between $20K and $80K ACV, 60 to 90 day cycle.

Market benchmark: median OTE $190K, median quota $800K, median commission rate 11.5% of ACV (Bridge Group 2024).

SDR / BDR (SaaS, Outbound)

Outbound SDR building pipeline for the AE team. Paid on meetings booked and opportunities created, not closed revenue.

Market benchmark: OTE range $70K to $90K, average base $57,739, pay mix 64:36 median / 70:30 recommended (Bridge Group 2024, Alexander Group).

Inside Sales Representative

Full-cycle inside rep handling inbound leads through close. High volume, shorter cycles, lower ACV than a field AE.

Market benchmark: average base $56,184, total comp $46K to $81K (Payscale 2025). Pay mix 50/50 for senior inside AEs, 60/40 to 70/30 for junior roles.

Field Sales Representative (Non-SaaS B2B)

Territory-based field rep in manufacturing, industrial, or professional services. Long cycle (90 to 130 days), large deals, relationship-driven.

Note: field rates run below SaaS rates because the deals are bigger. 5% on a $200K deal is $10,000, roughly the same absolute payout as 10% on a $100K SaaS deal.

Account Manager / CSM (Retention + Expansion)

Post-sale AM managing a book. Paid mostly on retention and expansion rather than new business.

Market benchmark: renewal commission rate ~4% of ACV (ICONIQ 2024). Pay mix 70:30 to 80:20.

Sales Manager

Front-line manager over 6 to 8 AEs. Paid on team outcomes, not individual deals.

Market benchmark: base $90K to $140K, OTE $150K to $250K (Sybill 2025). Management by Objectives plans used by 28% of sales managers (Everstage 2026).

How Plan Design Changes by Sales Motion

Sales comp gets discussed mostly through a SaaS lens, but the principles carry across every sector. The specific rates and amounts differ from one sector to the next, while the design framework stays the same across all of them. What matters most is the sales cycle length, how attributable individual revenue is, the margin profile, and whether the rep controls pricing. The industry label matters far less than any of those.

Across every motion, the quota-to-OTE ratio is the best single check on whether the structure is sound. Below 3x means you may be overpaying for what you ask. Above 6x means the quota is probably too aggressive. The B2B SaaS median is 4.2x. Non-SaaS motions with larger deals usually run a bit higher, because their commission rates are lower.

How to Set Base Pay, Variable Pay, Quota and Commission Rate

The pay mix decision. The split between base and variable is one of the heaviest choices in the plan, and most managers make it by copying what they saw at their last company instead of thinking about what it means for this role.

A deeper variable creates more income swing for the rep and more leverage for the company. When the rep performs, the pay is generous. When they do not, the pay is modest and the company's sales cost stays contained. That fits closing roles where performance is clearly measurable and the market rate is well established.

A heavier base cuts the swing and lowers the odds that money stress drives short-term behavior. A rep worried about rent chases whatever closes fastest, not whatever is worth the most over time. For enterprise AEs running long, complex cycles, a heavier base is what makes patient, strategic selling possible.

Pay mix benchmarks by role

Setting the quota. Only 51% of AEs hit quota in 2024, down from 66% in 2022. That drop is mostly a quota-setting problem. Quotas have climbed faster than the market conditions that decide what is actually closeable.

Work backwards from OTE. If OTE is $190K and the variable is $90K, set the quota so a strong but not exceptional rep can earn that $90K. At an 11.5% rate, that puts the quota near $780K. The quota-to-OTE ratio then tells you whether the plan holds together: the B2B SaaS median in 2024 is 4.2x, with typical ratios from 3.2x to 4.8x.

Setting the commission rate. The rate is an output of the OTE and quota decisions.. A rate that looks competitive on its own can be structurally wrong if it does not match the quota-to-OTE ratio for the role.

Commission rate = (OTE × variable %) ÷ Annual quota

Example: $190K OTE, 47% variable = $89,300 variable. Quota $800K. Rate = $89,300 ÷ $800,000 = 11.2% ≈ 11.5%.

Always derive the rate from the structure. Do not import it from another plan.

How to Structure Bonuses, Thresholds and Accelerators

Point every incentive at a business objective. Each incentive in the plan should trace back to something the company is trying to do.

Thresholds. A threshold protects the company from paying full rates on very weak production. Set it wrong and it punishes near-misses in a way that breeds resentment and attrition. A threshold that zeroes out an entire stream should sit around 60% of quota: low enough to be a floor on genuinely poor performance, high enough that it does not punish a rep who had a hard quarter. A threshold above 80% is almost always counterproductive in B2B. A rep who finishes at 78% after a real effort, and earns zero on that stream, does not forget it.

Accelerators. 82% of companies now run accelerated commissions that lift payouts by 20 to 30% once reps pass quota. The standard is a higher rate above 100%, usually 1.5x to 2x the base rate, to give top performers a reason to keep closing instead of coasting.

The decision that actually matters is retroactive vs. marginal. A retroactive accelerator re-rates all revenue in the period once the threshold is crossed. A marginal accelerator applies the higher rate only to revenue above the threshold. The gap between the two can be tens of thousands of dollars at the same attainment figure, and experienced reps model it carefully before they sign. State clearly in the plan document which one applies.

Fewer than 15% of companies cap commissions. Uncapped is the B2B SaaS norm, and senior AEs increasingly treat it as a condition of accepting an offer.

Decelerators. A decelerator cuts the rate below a defined floor. Use them sparingly, and set them only at levels that reflect genuinely non-contributory performance, not near-misses.

How to Build a New-Hire Ramp

A new rep cannot carry the same quota as a fully ramped one. They are learning the product, building pipeline from zero, and forming the relationships that make closing possible. Expecting full production in month one is not realistic — it is a scheduling error.

Average ramp in B2B SaaS is 5.7 months for AEs, stretching to 9 to 12 months for enterprise roles. A plan that holds a new hire to full quota through that period guarantees a miss, which demoralizes the rep and warps your attainment distribution.

The generator runs four ramp types, covering the structures used across most B2B orgs:

Linear ramp. Spreads the ramp evenly across the period. The most common shape and the easiest to explain.

Accelerated ramp. Starts slow and builds toward the end. Fits enterprise roles with long cycles where the rep cannot realistically close in the first months.

Front-loaded ramp. Starts higher and reaches full quota faster. Fits SMB roles with short cycles where a strong rep is closing by week three.

Guaranteed ramp. Pays the full variable for a set number of months regardless of what closes, with the quota target for those months set to zero. Nearly 40% of organizations provide some form of guaranteed commission to new hires, most often in enterprise sales where the first deals can take six months or more.

Ramp benchmarks by role

For a rep on a ramp, the generator shows two figures: what they earn in Year 1 given the ramp schedule, and what they would earn fully ramped at the same attainment level. The gap between those two numbers is information the rep deserves before they start.

What the Formal Plan Document Must Specify

A comp plan is not just a summary of numbers. It is a legal and operational document. Before it goes to a rep or gets signed, it needs all of the following.

Identity and scope. Rep name, role title, and reporting manager. Plan period (start and end dates). The products, territories, or segments the plan covers.

Earnings structure. Base salary (annual and monthly). Each variable component: type (commission, activity, bonus), the metric it pays on, the target, the rate or amount, and the payout formula. OTE, labeled clearly as earnings at 100% attainment and not a guarantee.

Thresholds and modifiers. Any threshold below which a stream does not pay. Whether that threshold applies per-stream or to overall attainment. Any accelerator: the trigger level, the rate, and whether it is retroactive or marginal. Any decelerator: the trigger level and the reduced rate. Whether commissions are capped, and at what level.

Ramp terms (new hires). Ramp duration in months. The quota target for each month of ramp. The earnings formula during ramp (does it scale with quota, or is the base rate applied to a lower target). Whether any months carry guaranteed variable, and if so which months and how much. What happens if the rep leaves or is terminated during ramp.

Split credit and multi-rep deals. How credit splits when more than one rep touches a deal. Whether overlay reps (SEs, CSMs) are in the split. How inbound leads assigned to an SDR are credited when the SDR sources the deal.

Clawback provisions. Whether commission is clawed back if a deal cancels or reverses inside a defined window. The window (typically 90 to 180 days from close). Whether the clawback is full or prorated. How recovery is applied (deducted from future commission vs. direct repayment).

Dispute resolution. How disputes about deal credit, quota adjustments, or payout calculations get resolved. Who has final authority over plan interpretation. The timeline for raising a dispute.

Plan change terms. Whether the company can change the plan mid-period and under what conditions. How changes are communicated (written notice, minimum notice period). Whether mid-year quota changes need rep consent.

Signature block. Rep signature and date. Manager signature and date. HR or Finance sign-off if required.

A plan missing any of these is incomplete. The most common omissions are the clawback terms, the retroactive vs. marginal accelerator spec, and the split-credit rules, which are exactly the provisions that later produce disputes. This is general guidance, not legal advice. Have your own plan reviewed by counsel where it matters, especially in states with specific commission-agreement rules.

Free Sales Compensation Plan Template

Use the structure below to document a full plan for any B2B sales role. Complete every field before the plan goes to the rep. Model the payout scenarios in the generator above before you fill in the earnings section.

SALES COMPENSATION PLAN
------------------------

REP NAME:              _______________________________
ROLE TITLE:            _______________________________
REPORTING MANAGER:     _______________________________
PLAN PERIOD:           From _____________ to _____________
EFFECTIVE DATE:        _______________________________
COVERED PRODUCTS /
TERRITORIES:           _______________________________

------------------------
BASE SALARY
------------------------

Annual base salary:    $ _______________________________
Monthly base salary:   $ _______________________________
Paid in full every month, regardless of performance or quota attainment.

------------------------
VARIABLE COMPENSATION
------------------------

On-Target Earnings (OTE):                        $ _____________
Variable at 100% attainment of all objectives:   $ _____________
Pay mix (base : variable):                         ______ : ______

OTE is the total compensation earned when all objectives are hit at exactly 100%.
OTE is not a guarantee. Only the base salary is guaranteed.

COMMISSION STREAMS

Stream 1: _______________________________
  Metric:              _______________________________
  Annual target:       $ _______________________________
  Commission rate:     _______ %
  Threshold:           _______ % of target (no commission below this)
  Full-target payout:  $ _______________________________

Stream 2 (if applicable): _______________________________
  Metric:              _______________________________
  Annual target:       $ _______________________________
  Commission rate:     _______ %
  Threshold:           _______ % of target
  Full-target payout:  $ _______________________________

ACTIVITY OBJECTIVES (if applicable)

Activity: _______________________________
  Annual target:       _______ [qualified meetings / SQLs / other]
  Amount per action:   $ _______________________________
  Full-target payout:  $ _______________________________

BONUS OBJECTIVES (if applicable)

Bonus: _______________________________
  Condition:           Attain _____% of quota / Close _____ new logos / Other
  Payout:              $ _____________ or _____% of base salary
  Additional conditions: _______________________________

------------------------
ACCELERATORS AND THRESHOLDS
------------------------

Overall threshold (below this, no commission on any stream):  _______ % of total quota
Accelerator activates at:                                     _______ % of quota
Accelerator rate:                                             _______ x base commission rate
Second accelerator (if applicable):                           _______ % at _______ x rate
Accelerator type:         [ ] Retroactive (re-rates all revenue)
                          [ ] Marginal (applies only to revenue above threshold)
Commission cap:           [ ] Uncapped
                          [ ] Capped at $ _______________________________

------------------------
RAMP SCHEDULE (new hires only)
------------------------

Ramp duration:   _______ months
Ramp type:       [ ] Linear   [ ] Accelerated   [ ] Front-loaded   [ ] Guaranteed
Guaranteed months (guaranteed type only): _______

Month-by-month quota schedule:
  Month 1:  _______ % of annual quota  ->  monthly quota: $ _____________
  Month 2:  _______ % of annual quota  ->  monthly quota: $ _____________
  Month 3:  _______ % of annual quota  ->  monthly quota: $ _____________
  Month 4:  _______ % of annual quota  ->  monthly quota: $ _____________
  Month 5:  _______ % of annual quota  ->  monthly quota: $ _____________
  Month 6:  _______ % of annual quota  ->  monthly quota: $ _____________
  Month 7+: 100% of annual quota       ->  monthly quota: $ _____________

------------------------
CLAWBACK PROVISIONS
------------------------

Clawback applies:    [ ] Yes     [ ] No
Window:              _______ days from deal close date
Clawback type:       [ ] Full (100% of commission recovered)
                     [ ] Prorated (proportional to unfulfilled contract period)
Recovery method:     [ ] Deducted from future commission payments
                     [ ] Direct repayment required

------------------------
SPLIT CREDIT AND MULTI-REP DEALS
------------------------

Multi-rep split policy: _______________________________
Overlay rep inclusion:  _______________________________
SDR sourcing credit:    _______________________________

------------------------
PLAN CHANGE TERMS
------------------------

This plan may be modified by the company with [ ] _______ days written notice.
Mid-year quota changes require: [ ] Manager approval only  [ ] Rep consent

------------------------
SIGNATURES
------------------------

I have reviewed this plan and understand how my compensation is calculated.

Rep signature:      _______________________________
Date:               _______________________________

Manager signature:  _______________________________
Date:               _______________________________

How to Present and Share the Plan

Most companies answer "how do I get paid?" badly. A static PDF the rep cannot interact with. A verbal walkthrough they forget three weeks later. A spreadsheet that needs prior modeling experience to read.

The generator produces a shareable link that encodes the plan in the URL. The rep opens a read-only interactive version of their own plan, moves the attainment sliders, and watches earnings update. Nothing to decode.

The presentation should cover four things.

First, the base structure. Here is your base. Here is your variable at 100%. Here is the OTE. Here is how the rate was set relative to your quota.

Second, the scenarios. Walk the model you ran before the meeting, at low, target, and above-target attainment. Ask the rep to work out what 85% earns before you show them. If they can do it without your help, the plan is clear.

Third, the ramp, for new hires. Show Year 1 earnings against fully ramped earnings. The gap is usually big, and they should see it before day one.

Fourth, the accelerator. Show exactly what happens when they cross 100%, and make it explicit whether the accelerator is retroactive or marginal.

Share the link before their start date. The rep should walk in on day one already knowing how they get paid.

Common Design Mistakes

Building complexity before clarity. A plan you cannot explain in two minutes will not drive the behavior you built it for. Start with one or two commission streams, add a bonus if it is strategically important, add an accelerator, and stop there unless there is a specific reason for more.

Setting quotas on what the company needs, not what the market supports. The quota is an estimate of what a rep with this profile, in this territory, selling this product, can realistically close in this period. When you set it by splitting the difference between what the company wants and what the rep says they can do, you end up with a number the market cannot support, and the plan misses on day one.

Explaining the plan once and assuming it landed. A plan has to be explained more than once, in a format the rep can go back to on their own. The shareable link solves this.

Not modeling the plan before presenting it. Before any rep sees their plan, confirm that earnings are survivable at 70%, competitive at 100%, and worth chasing at 130%.

Changing the plan mid-year without cause. More than 85% of organizations adjust their comp strategy periodically, according to WorldatWork's 2024 Sales Compensation Survey. Keep formal changes on a consistent annual cycle. Reserve mid-year changes for real structural shifts, a new product or a territory restructure, not for course-correcting on attainment.

Setting the threshold too high. A 90% threshold that wipes out a stream for a rep who finishes at 88% will cost you the rep. Keep thresholds at or below 60%.

Leaving the accelerator type unspecified. Not stating whether an accelerator is retroactive or marginal creates disputes with your best performers, the exact people you need to keep.

Formula and Generator Methodology

The generator treats a comp plan as an additive combination of a base salary and a small set of payout rules (commission, fixed amount, bonus), each able to carry conditions (threshold, accelerator, cap). This mirrors how real B2B comp plans are built.

Plan = { baseSalary, objectives[], ramp? }

Objective types:
- commission: { streamName, target, rate }
  -> full-quota payout = target x rate%
- activity: { name, amountPerAction, annualTarget }
  -> full-target payout = annualTarget x amountPerAction
- bonus: { condition, reward }
  -> payout = fixed amount or % of base, paid only if condition is met

Ramp coefficient for month i, duration N:
  linear:       coef(i) = i / N
  accelerated:  coef(i) = (i / N)^2
  front-loaded: coef(i) = sqrt(i / N)
  guaranteed:   coef(i) = 1.0 for months <= guaranteedMonths
                coef(i) = (i - guaranteedMonths) / (N - guaranteedMonths) otherwise

Monthly Year-1 earnings (month i):
  earnings(i) = baseSalary / 12
    + Sum of commission objectives: (target x rate / 100 / 12) x coef(i)
    + Sum of activity objectives: (annualTarget x amount / 12) x coef(i)
    + Sum of bonus objectives: payout / 12 [only if coef(i) >= 1.0]

Base salary is always paid in full. Commission and activity earnings scale with the ramp coefficient. Bonuses are binary: they pay in full only in months where the coefficient reaches 1.0.

Assumptions

• Base salary is paid in full every month of Year 1, regardless of ramp coefficient or attainment.
• Commission and activity objectives scale with the ramp coefficient in both earnings and quota targets for every month within the ramp duration.
• Bonus objectives pay in full only in months where the ramp coefficient reaches 1.0. They never pay a prorated fraction.
• Under the guaranteed ramp type, the earnings coefficient is 1.0 for guaranteed months while the quota coefficient for those months is 0: full pay, no quota expectation.
• Ramp duration is fixed to one of three options: 3, 6, or 12 months.
• If no commission objective is defined, the plan defaults to a single "Revenue" stream with a $600,000 quota for calculation purposes.
• The shareable plan link encodes the plan as base64 JSON in the URL. There is no server-side storage.

Limitations

The generator models Year 1 earnings under a chosen attainment scenario. It is not a payroll or commission-tracking system. It does not tell you whether the resulting OTE is competitive — compare the numbers against the benchmarks in this article or your own market data. Ramp is one of four fixed mathematical curves and does not account for irregular onboarding, leave, or mid-ramp territory changes. Bonus payouts are evaluated against the ramp coefficient reaching 1.0, not against the rep's actual bonus-condition performance during ramp months. Plan data lives in the browser and the encoded share link — there is no account system. Default benchmarks reference B2B SaaS data; the generator works for any B2B compensation plan.

This tool is part of RepMath's collection of free sales tools built for B2B sales professionals.

Last updated: 2026-07-26 · Data sources version: 2026