Comp cost is a second-order function of attainment. A plan that costs 10% of revenue at 85% team attainment can cost 14% of revenue at 115% attainment — not because you over-attained, but because accelerators and SPIFFs kick in on the marginal dollar. Most SalesOps teams model the at-quota cost and forget to stress-test the over-attainment cost.
This tool runs five attainment scenarios through your plan mechanics: base salary, commission rate, accelerator threshold, and accelerator multiplier. It returns total comp spend per scenario, the comp-to-revenue ratio, and the cost growth curve — so you can see the cost-of-upside before committing to the plan design.
The three inputs that drive cost
1. Pay mix (base vs variable split)
A rep with a $200K OTE split 50/50 ($100K base + $100K variable at target) costs very differently from one split 70/30 ($140K base + $60K variable). Higher base means more fixed cost even if reps miss quota; higher variable means the company only pays big comp when the reps produce. Most enterprise plans run 60/40 or 50/50; transactional plans lean 70/30.
2. Commission rate on revenue
The "target commission rate" is variable-pay ÷ quota. For a $60K variable at $1M quota, rate is 6%. That's the at-target cost. Above quota, the rate is multiplied by the accelerator — so the above-quota rate can jump to 12-15%. The marginal cost of the 1,000,001st dollar is what drives the cost curve steepness.
3. Accelerator structure (threshold and multiplier)
Accelerators trigger at a threshold (usually 100% of quota) and multiply the base rate (usually 1.5-2.5×). A 2× accelerator at 100% threshold means dollars above quota pay double the commission of dollars below. This is correctly designed — it creates stretch — but it's also where comp cost balloons when the whole team over-attains.
Most finance teams model the at-quota cost (100% attainment for everyone) and call it done. That's the minimum cost, not the expected cost. Expected cost lives in a weighted mix of scenarios — some reps miss, some hit, some over-attain. This tool forces you to see what the portfolio cost looks like across realistic attainment distributions, including the upside-heavy scenarios that are most expensive and most desired.
Comp Cost Modeler
Tell us the plan. We'll run 5 scenarios and surface the cost curve.
ℹ️ How this tool works +
The question it answers: Across realistic attainment outcomes, what does my plan cost in total comp, and how does the cost-to-revenue ratio change as attainment rises?
What to enter:
- Team size — number of reps on the plan.
- Annual quota per rep — in full dollars (e.g.,
1000000for $1M). - Base salary per rep — the fixed component of OTE.
- Target variable per rep — what the rep earns in commission at 100% attainment.
- Accelerator threshold — attainment % where the accelerator kicks in (usually 100).
- Accelerator multiplier — how much the commission rate multiplies above the threshold (e.g., 2.0 for 2×).
What the tool computes:
- 5 scenarios — 70%, 85%, 100%, 115%, 130% team-average attainment.
- For each: total revenue, total base, total commission (split below/above threshold), total comp, comp-to-revenue ratio.
- Band and recommendations based on the at-target (100%) ratio.
What you'll get back:
- Headline at-target cost in $ and as % of revenue.
- 5-row scenario table with all cost components.
- Cost-band recommendations (Lean / Typical / Elevated / Unsustainable).
Sample values pre-loaded for a 20-rep team with $1M quotas, 60/40 pay mix, 2× accelerator. Edit to match your plan.
Benchmarks, ranges, and default values in this tool reflect Falcon's practitioner experience across consulting engagements. They are directional starting points, not substitutes for market survey data. For binding compensation decisions, validate key figures against Radford, Mercer, Carta, or WorldatWork survey data for your specific geography, industry, and company stage.
How to interpret the at-target ratio
Below 7% — Lean
Efficient plan; common in high-volume transactional businesses. Watch for under-investment: if your best reps are comparing comp packages to peers and finding yours low, you'll lose them regardless of ratio efficiency.
7–11% — Typical
Most enterprise SaaS plans land here. Supports a 60/40 or 50/50 pay mix, moderate accelerators, and realistic over-attainment. Sustainable at scale.
11–15% — Elevated
Either high-margin product economics or aggressive comp design. Justifiable if product gross margin is 80%+, but scrutinize the accelerator structure — elevated ratios often trace to over-generous acceleration above quota.
Above 15% — Unsustainable
Either the product economics don't support the comp spend, or accelerators are stacking in ways you haven't stress-tested. Review plan structure; investor-backed growth businesses can sustain this briefly, mature businesses cannot.
A plan that costs 10% of revenue at 100% attainment commonly costs 13-14% at 115% attainment — a 30-40% cost jump for a 15% revenue uplift. This is by design (accelerators), but it means the cost-of-upside is almost twice the cost-of-target. Budget for the 115% scenario, not the 100% scenario, when forecasting.
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Book a 20-minute consultation →FAQ
This tool models the core plan. SPIFFs and non-recurring incentives add 10-20% to the baseline comp cost in most plans — add a "strategic incentive pool" line to your budget equal to that share of planned variable comp.
No. If your plan has a cap at, say, 200% of target variable, the marginal-dollar cost flattens above that level. This tool assumes uncapped accelerator — conservative for cost forecasting. Real costs under a cap will be slightly lower in the 130%+ scenarios.
Use the Attainment Distribution Analyzer to understand where your team actually lands. Then this tool tells you the cost at each scenario. The two together give you expected comp spend weighted by actual outcome probability, not just at-target assumptions.
For portfolio cost modeling, team average is a close enough proxy. Individual-level modeling is needed when you have heavily non-linear plans (steep caps, non-linear SPIFF triggers) — not covered here to keep the tool focused.