Sales Ramp Calculator

Input annual quota, contract value, sales cycle, and variable pay below to calculate a monthly or quarterly breakdown for your new hire's quota and ramping comp plans.

Sales Ramp Calculator

Set Your New Sales Hires Up for Success

Ramp quotas and commissions for new reps with our ramp calculator.

The Sales Ramp Calculator helps revenue leaders create a quota and ramping comp plans for new hires. Factoring in annual quota, contract value, sales cycle length, and variable pay, the tool generates a clear monthly or quarterly breakdown—ensuring reps stay motivated while ramping to full earnings.

How It Works

Enter Key Data

Input annual quota, contract value, sales cycle, and variable pay.

Get a Custom Ramp Plan

See when reps start with guaranteed OTE, transition to partial quota with a higher commission rate, and reach full quota.

View & Export Results

Get a structured breakdown of quotas, commission rates, and earnings to share with your team.

Need Advice? We Offer Free Comp Consultations

The Math Behind the Sales Ramp Calculator

Our Sales Ramp Calculator is designed to help revenue leaders structure quota and ramping comp plans for new sales hires.

Here’s how it works:

1. Input Key Sales Data

  • Annual Quota – The total revenue a fully ramped rep is expected to generate in a year.
  • Average Contract Value (ACV) – The typical deal size, used to determine how many deals a rep needs to close.
  • Sales Cycle Length – The average time it takes to close a deal, which impacts how quickly a new hire can start generating revenue.
  • Variable Pay – The portion of on-target earnings (OTE) tied to commission, used to calculate the commission rate.

2. Deriving Key Metrics

Once these inputs are provided, the calculator:

  • Determines the Base Commission Rate:
  • Commission Rate = Variable Pay ÷ Annual Quota
  • Example: If a rep’s variable pay is $175,000 and their quota is $1.5M, the base commission rate is 12%.
  • Calculates the Number of Deals Needed to Close Per Year:
  • Deals per Year = Annual Quota ÷ ACV
  • Example: If the quota is $1.5M and the ACV is $50K, the rep must close 30 deals per year.

3. Structuring the Ramp Plan

The ramp-up schedule follows a structured approach based on sales cycle length and tenure. An example of the output is as follows:

  1. First 2 Months: Guaranteed OTE, no quota expectations.
  2. Until 40% of the Sales Cycle is Completed: 50% quota with double commission rate to incentivize early productivity.
  3. After 40% of the Sales Cycle: Full quota and standard commission rate.

4. Generating Monthly or Quarterly Breakdown

  • The tool aggregates quota targets, commission earnings, and total variable pay over time.
  • If reps close fewer than 20 deals/year, the recommended quota interval is annual.
  • If they close 20–60 deals/year, the quota interval is quarterly.
  • If they close more than 60 deals/year, the quota interval is monthly.

5. Calculating Effective Commission Rate in Year 1

Since reps earn higher commission rates during ramp-up before transitioning to the full structure, the calculator determines an effective commission rate for the first year.

  • Example: If a rep starts at $175K variable pay with a ramp period of 2 months guaranteed OTE and 1 month at double rate, their effective commission rate for the year might be ~14.7%, slightly higher than their standard 12% rate due to the initial boost.
By following this structured formula, the Sales Ramp Calculator provides a clear, fair, and data-driven ramp plan that aligns rep earnings with realistic expectations.

FAQ

What is a ramp up period in sales?

A ramp-up period in sales is the time it takes for a new sales hire to reach full productivity and quota attainment. During this period, quotas and commissions are often adjusted to give reps a fair chance to succeed.

How do you calculate sales ramp compensation?

Sales ramp compensation typically starts with guaranteed OTE, transitions to a partial quota with a higher commission rate, and eventually reaches full quota. The structure depends on deal cycle length and expected productivity milestones

How to calculate sales ramp up in excel:

Use formulas to project quota and commission progression over time. Input rep OTE, variable pay, expected deal volume, and ramp phases to calculate monthly or quarterly targets.

What is the ramp rate in sales? 

Ramp rate refers to the percentage of quota a new rep is expected to achieve over time. It gradually increases as the rep gains experience, moving toward full productivity.

What is ramp up time in sales?

Ramp-up time is the duration it takes for a sales rep to reach full quota attainment. It varies by company and role but typically ranges from three to six months.