Worked example
$60,000 of variable at target, a 50% threshold, a 0.5 rate multiplier below quota, a 2× accelerator above it and a cap at 300% of target, for a rep at 120% attainment.
| Input | Value |
|---|---|
| Variable pay at target | $60,000.00 |
| Threshold | 50% |
| Rate multiplier below 100% | 0.5 |
| Accelerator above 100% | 2 |
| Cap (% of target variable) | 300% |
| Your attainment | 120% |
| Result | Value |
|---|---|
| Variable payout | $84,000.00 |
| Payout as % of target | 140% |
| Pay per 1% between threshold and 100% | $300.00 |
| Pay per 1% above 100% | $1,200.00 |
| Step when reaching 100% | $30,000.00 |
- Attainment: 120%
- From 100%: 100% + (attainment − 100%) × accelerator: 140%
- × Variable at target = payout: $84,000.00
How the curve is built
Below the threshold: payout = 0
Threshold to 100%: payout = attainment × rate multiplier × variable at target
From 100%: payout = (100% + (attainment − 100%) × accelerator) × variable at target
With a cap: payout = min(payout, cap % × variable at target)
Below quota, every 1% of attainment pays the rate multiplier times 1% of target. With a multiplier of 0.5, a rep at 80% earns 40% of target rather than 80%. Reaching 100% restores the full rate on all attainment, so a multiplier below 1 creates a step at quota equal to (1 − multiplier) × target. A multiplier of 1 removes the step and makes the curve a straight line up to quota.
Marginal pay in each band
- Below the threshold: each extra 1% pays nothing, until the threshold is crossed and the whole band pays at once.
- Threshold to 100%: each extra 1% pays the rate multiplier × 1% of target.
- Above 100%: each extra 1% pays the accelerator × 1% of target, until the cap.
- Above the cap: each extra 1% pays nothing.
Steps and flat zones create incentives to time deals around them. For accelerator tiers in more detail see the accelerator calculator; to apply a curve to real deals, use the sales commission calculator.
Limitations
- One accelerator band only; multi-tier curves need the plan simulator.
- Some plans anchor the reduced band differently, for example by drawing a straight line from the threshold to 100%. Check your plan document.
- We do not publish benchmark thresholds, multipliers or caps.
Frequently asked questions
What is a sales pay curve?
It is the rule that converts quota attainment into variable payout. It is usually drawn as a chart with attainment on one axis and payout as a percentage of target on the other.
What does a threshold do?
Nothing is paid below the threshold. At exactly the threshold, payout starts at threshold × rate multiplier of target.
Why is there a jump at 100%?
In this model a rate multiplier below 1 reduces pay on all attainment until quota is reached. Hitting quota restores the full rate, which creates the step. Set the multiplier to 1 for a curve without a step.
Does the cap apply to total pay?
No, only to variable pay. The cap is expressed as a percentage of variable at target; base salary is outside the curve.