What is Quota to OTE Ratio?
The quota to OTE ratio measures the expected revenue target relative to a salesperson's total compensation, with 5:1 being the standard benchmark for B2B SaaS sales roles.
Quota to OTE ratio tells you how much revenue a company expects per dollar of sales compensation. It's a critical input for sales capacity planning, compensation design, and evaluating whether a role's economics make sense for both the company and the rep.
Standard Ratios by Role
The most common ratios in B2B SaaS: AE roles target 5:1 (a rep with $200K OTE carries a $1M quota). Senior AEs and enterprise reps sometimes see 4:1 due to longer cycles and higher complexity. SDRs are typically measured on pipeline generated, not closed revenue, so the ratio doesn't apply directly. VP Sales are usually held to team quotas, with their personal OTE at a 3:1 to 4:1 ratio against the team number they directly influence.
When the Ratio Breaks
A ratio below 4:1 means the company is paying too much relative to the quota. Either quotas are too low, comp is too high, or the market for talent has pushed OTEs above what the business model supports. A ratio above 6:1 means reps are underpaid relative to their targets, which drives attrition. CROs should recalibrate annually using market comp data and historical attainment rates.
Using the Ratio in Capacity Planning
If you need $10M in new ARR and your average AE has a $1M quota with a 5:1 ratio (OTE of $200K), you need at least 10 AEs at full ramp to cover the target. But reps ramp over 4-6 months and average attainment is 55-65%, so you'll actually need 15-18 AEs to reliably hit $10M. This is where quota-to-OTE ratio feeds directly into sales capacity planning.
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