TL;DR — OTE (On-Target Earnings) is the total pay you can expect in a year if you hit 100% of your targets: your guaranteed base salary plus the variable pay (usually commission or a bonus) you earn at full quota attainment. It is a projection, not a promise.
OTE stands for On-Target Earnings. You will see it most often on remote sales, account management, and customer success roles. It combines two parts: a fixed base salary you receive no matter what, and a variable component you earn by hitting performance targets. The OTE figure assumes you reach exactly 100% of quota. Beat your quota and you can earn more; miss it and you earn less than the advertised number.
How OTE breaks down
A common structure is a 60/40 split: 60% of OTE is base, 40% is variable. Here is an illustrative example for a $120,000 OTE role.
| Component | Amount | Share of OTE |
| Base salary | $72,000 | 60% |
| Variable (at 100% quota) | $48,000 | 40% |
| Total OTE | $120,000 | 100% |
In this example you take home $72,000 even in a slow year. The remaining $48,000 depends on performance. Splits vary widely: a 70/30 mix is more stable, while a 50/50 mix puts more upside (and more risk) on the variable side.
Why OTE matters when job hunting
OTE is a target, not a guarantee. Two roles can advertise the same $120,000 OTE while paying very different base salaries, which changes your financial floor completely. Before you compare offers, ask the employer:
- What is the exact base-versus-variable split?
- What share of the team actually hit 100% quota last year?
- Is any part of the variable capped, accelerated, or paid as a draw?
The base salary is your safety net. The variable is the stretch. Knowing both lets you judge an offer honestly instead of anchoring on a single headline number.
Frequently Asked Questions
Is OTE the same as my guaranteed salary?
No. Only the base portion is guaranteed. The variable portion is earned by hitting targets, so your actual pay can land above or below the advertised OTE depending on performance.
What is a good base-to-variable split?
It depends on your risk tolerance. A 70/30 or 60/40 split offers a sturdier base, while a 50/50 split rewards strong performers more but exposes you to bigger swings. Neither is inherently better.
Does OTE include equity or benefits?
Usually not. OTE typically covers base plus cash variable only. Equity, signing bonuses, and benefits are separate, so factor them in when comparing total compensation.
How can RemoteHunt help me find roles like this?
RemoteHunt is an all-in-one AI job-search platform for remote workers — it builds your resume, finds and scores jobs against it, writes tailored applications, and coaches you through the search. It aggregates remote jobs from 18+ sources, scores each one 0-100 against your resume, and surfaces disclosed salary and OTE ranges where the company shares them.
For more on the roles where OTE shows up, see our guide to remote sales jobs, and when an offer lands, read how to negotiate remote salary.
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