Guides
What Is OTE (On-Target Earnings)?
OTE stands for on-target earnings: the total annual pay a sales job pays if you hit 100% of your quota. It is your fixed base salary plus your target commission or bonus. In our 2026 data, the median US sales engineer has an OTE of $205,000 on a base of $145,000, an implied 71/29 base-to-variable split.
US enterprise technology pre-sales offers we negotiated or verified. Sample: n = 327; collected January 2026 to August 2026.
How OTE is calculated
OTE = base salary + target variable pay (commission or bonus at 100% of quota).
| Part | What it is | Guaranteed? |
|---|---|---|
| Base salary | Fixed pay | Yes |
| Target variable pay | Commission or bonus earned against quota | No |
What does a $150k or $200k OTE mean?
The base you actually take home depends on the split. Here is the same OTE on three common splits.
Example · base / variable
| OTE | 70/30 split | 60/40 split | 50/50 split |
|---|---|---|---|
| $150,000 | $105,000 / $45,000 | $90,000 / $60,000 | $75,000 / $75,000 |
| $200,000 | $140,000 / $60,000 | $120,000 / $80,000 | $100,000 / $100,000 |
| $250,000 | $175,000 / $75,000 | $150,000 / $100,000 | $125,000 / $125,000 |
Sales engineers usually sit near 70/30, so more of their pay is guaranteed. Enterprise account executives are closer to 50/50.
What does “25% OTE” or “75/25” mean?
It describes the split. “75/25” (or “25% variable”) means 75% of OTE is base salary and 25% is target commission.
Example: On a $200,000 OTE, that is $150,000 base and $50,000 variable at 100% of quota.
Is OTE guaranteed?
No. Only the base salary is guaranteed. If you miss quota you earn less than OTE, and if you beat it, accelerators can take you above it.
In our data, 61.4% of sales engineers reached quota, so a large share were paid below their OTE.
US enterprise technology pre-sales offers we negotiated or verified. Sample: n = 327; collected January 2026 to August 2026.
OTE vs base salary vs total compensation
| Term | What it includes | Guaranteed? |
|---|---|---|
| Base salary | Fixed pay | Yes |
| OTE | Base + target variable at 100% quota | Base only |
| Total compensation | Actual base + actual variable, often including equity and benefits | Varies |
OTE usually excludes equity, benefits and sign-on bonuses, so compare offers on OTE and equity separately.
Capped vs uncapped commission and accelerators
Capped means commission stops at a ceiling; uncapped means it doesn't.
Accelerators raise the commission rate after a threshold. In our data, accelerators typically start at 100% of quota. See quota and accelerators.
US enterprise technology pre-sales offers we negotiated or verified. Sample: n = 327; collected January 2026 to August 2026.
Typical OTE by sales role (2026)
| Role | Median base | Median OTE | Implied split | Sample |
|---|---|---|---|---|
| Sales engineer | $145,000 | $205,000 | 71/29 | n = 327; collected January 2026 to August 2026 |
| Solutions architect | $170,000 | $206,061 | — | n = 327; collected January 2026 to August 2026 |
| Technical account manager | $135,000 | $163,636 | 83/17 | n = 327; collected January 2026 to August 2026 |
US enterprise technology pre-sales offers we negotiated or verified. Implied splits compare the role's median base with its median OTE; they are not individual plan splits. Equity and benefits excluded.
Questions to ask about an OTE offer
- What's the split?
- What % of the team hit quota last year?
- Is commission capped?
- When do accelerators start?
- How is variable paid (monthly or quarterly)?
- Is any of it tied to MBOs rather than revenue?
Custom benchmark
Setting an OTE for a sales engineering hire?
Frequently asked questions
What does OTE stand for?
On-target earnings (sometimes "on-track earnings"): base salary plus target commission at 100% of quota.
What does $150k OTE mean?
Example: Total pay of $150,000 at 100% of quota. On a 70/30 split that's $105,000 base and $45,000 variable.
What does $200k OTE mean?
Example: Total pay of $200,000 at 100% of quota. On a 70/30 split that's $140,000 base and $60,000 variable.
Is OTE the same as salary?
No. Salary is the guaranteed base. OTE adds target variable pay that depends on hitting quota.
Does OTE include equity or benefits?
Usually not. OTE is cash only: base plus target commission or bonus.
What is a good OTE for a sales engineer?
The 2026 US median is $205,000, rising with seniority and in sectors like AI and cybersecurity. See sales engineer salary. Sample: n = 327; collected January 2026 to August 2026.
Cite this data
“Sales Engineer OTE Salary Report 2026”, salesengineersalary.com.
Median base $145,000 (n = 327), median OTE $205,000 (n = 327).
Collected January 2026 to August 2026. Updated . https://salesengineersalary.com/guides/what-is-ote