OTE stands for "On-Target Earnings" and is a term used in job advertisements, especially for sales personnel. It is the expected total pay an employee can earn if they hit 100% of their quota. OTE is a combination of fixed salary and variable income, which includes an employees base pay and sales commission. The actual pay may be higher or lower than the OTE, depending on the employees performance.

OTE is usually given in an annual figure, and it can be capped or uncapped, depending on the organization and employer. The equation for OTE is simple: Annual base salary + annual commission earned at 100% of quota = On-Target Earnings (OTE) .

OTE is a useful way to motivate salespeople and keep them focused on achieving their targets. It can also be a useful way to get different departments in an organization aligned around revenue and expenses. The average OTE for sales representatives in the United States is around $60,000 per year and ranges from $30,000 to $100,000 or more depending on the industry, region, and company.