About the Sales Quota Calculator
This sales quota calculator works backwards from the revenue target to the quota each rep should carry. Enter the annual target, the share of quota your team typically attains, how many fully ramped reps you have, how many new reps start this year and how long they take to ramp. It returns the total quota to assign, the quota for a fully ramped rep, a reduced first-year quota for new hires and the quota-to-OTE ratio.
It is built for sales leaders, revenue operations and founders doing annual planning or setting up a first sales compensation plan. Because teams rarely hit 100% of quota on average, quotas are usually set higher than the target — this "over-assignment" is calculated for you from the expected attainment rate.
New reps are assumed to start at the beginning of the year and ramp linearly from zero to full productivity over the ramp period, so during ramp they contribute about half a ramped rep’s output. If reps join mid-year or ramp differently, adjust the inputs or use the monthly table as a guide.
With the default inputs, the annual quota per ramped rep is $865,384.62. Change any value above to recalculate instantly.
How to use the sales quota calculator
- 1Enter the annual revenue target for the team.
- 2Enter your historical average quota attainment.
- 3Enter the number of fully ramped reps and new hires starting this year.
- 4Set the ramp time and the on-target earnings per rep.
- 5Use the ramped and new-rep quotas in your plan and check the quota-to-OTE ratio.
Formula and method
If reps on average achieve 80% of quota, the company only lands its target when total assigned quota equals target ÷ 0.8 — 25% higher. That buffer is the over-assignment. The total is then shared across the team’s effective capacity.
A new rep who ramps linearly from 0% to 100% over R months produces about half a ramped rep’s output during ramp, so over a 12-month year they deliver (12 − R/2) ÷ 12 of a full rep. The first-year quota for a new rep is the ramped quota × that factor; the table spreads it month by month using productivity of (month − 0.5) ÷ R until fully ramped. Quota-to-OTE divides a ramped rep’s quota by their on-target earnings.
- target
- Annual revenue the team must deliver
- attainment
- Average share of quota reps achieve
- R
- Months for a new rep to reach full productivity
- OTE
- On-target earnings: base plus variable pay at 100% of quota
Worked examples
$9M target, 10 reps plus 4 new hires
At 80% attainment, $9M needs $11.25M of quota (25% over-assignment). A 6-month ramp makes each new hire worth (12 − 3) ÷ 12 = 0.75 of a rep, so capacity is 10 + 4 × 0.75 = 13. Each ramped rep carries $11.25M ÷ 13 ≈ $865,385, new reps $649,038, and the quota-to-OTE ratio is 4.81×.
Small team, no new hires, 100% planning
Planning on 100% attainment means no over-assignment, so four reps share $2.4M equally: $600,000 each, or $50,000 a month — five times their $120,000 OTE.
Hiring-heavy year with a 9-month ramp
A 75% attainment rate pushes total quota to $8M. A 9-month ramp makes each new rep worth (12 − 4.5) ÷ 12 = 0.625, so capacity is only 3 + 6 × 0.625 = 6.75 reps and ramped quota climbs to $1.19M — a 7.9× quota-to-OTE ratio that signals the target may be too aggressive.
Frequently asked questions
How do you calculate sales quota per rep?+
Divide the revenue target by your expected average attainment to get total quota, then divide by the number of effective reps, counting ramping hires as a fraction of a full rep. With a $9M target, 80% attainment and 13 effective reps, each ramped rep carries about $865,000.
What is quota over-assignment?+
Over-assignment means the sum of all rep quotas is higher than the company target, to allow for reps who miss. If reps typically hit 80% of quota, assigning 125% of the target gives the company a realistic path to 100%.
What is a good quota-to-OTE ratio?+
Many B2B sales teams use roughly 4× to 6× on-target earnings as a sense check, with higher ratios in high-volume or transactional sales. Very low ratios make sales expensive; very high ratios usually mean quotas are unrealistic.
How should quotas account for ramping reps?+
New reps need time to build pipeline, so they usually get a reduced or stepped quota during ramp. A linear ramp over six months means a rep who starts in January delivers about 75% of a full rep’s annual output in year one.
What percentage of reps should hit quota?+
Well-set quotas are typically designed so that a majority of reps — often around 60% to 70% — can reach them. If far fewer reps attain quota year after year, quotas or territories probably need rebalancing.