Method and definitions
Commission = min(sales, quota) × base rate + max(0, sales − quota) × above-quota rate. Compensation = base pay + commission. OTE = base pay + quota × base rate.
All figures must share a period. This simple marginal accelerator model excludes caps, thresholds, clawbacks, draws, split credit and taxes. Above-quota rate applies only to the excess; it does not retroactively change the rate on all sales. Match your actual compensation agreement.