Comp plan cost model

Finance usually asks what the plan costs if the team crushes it, and nobody asks what it costs per dollar if the team misses. Base pay is fixed, so a miss is the expensive year per booking dollar, even with accelerators on the upside. This model builds total comp cost by role at three attainment levels and shows cost of sales as a percent of bookings, including the marginal cost of the upside.

Category:: Comp & Incentives
Formats:: CSV + web view
Sections:: 5
Updated:: September 24, 2026

What you get

A headcount and plan inputs table for AEs, SDRs, and a manager
Variable pay by role at 80%, 100%, and 120% team attainment
Total comp cost, including an employer burden line, at each level
Cost of sales as a percent of bookings with every formula written out
The marginal cost of bookings between 100% and 120%

Who it's for

Finance partners approving next year's comp budget
RevOps leads building the annual plan
VPs of Sales defending accelerator rates

What's inside

1
Plan inputs
6 columns, 4 worked example rows
2
Cost by attainment level
5 columns, 8 worked example rows
3
Checking the math
Guidance notes
4
Variable-only cost of sales
5 columns, 3 worked example rows
5
Before sharing with finance
8-point checklist

Preview of section 1

Plan inputs

Example team. Replace with your own headcount and plan terms.

Role	Headcount	Base each ($)	Target incentive each ($)	Payout curve	Total base ($)
AE	10	120,000	120,000	12.5% of bookings to quota (120,000 / 960,000); 25% above	1,200,000
SDR	4	54,000	36,000	Assumed linear with team attainment	216,000

The preview shows part of section 1. The full template has all 5 sections (4 not previewed here), with blank rows ready to fill in. Download the full template

How to use it

1
Enter real headcount by month, not year-end headcount
The example uses full-year headcount for clarity. In your model, prorate base and target incentive for hires and departures, or the cost will be overstated.
2
Use each role's actual payout curve
Pull rates and accelerators from the plan documents. If SDR or manager variable pay does not scale linearly with team attainment, change those rows to match the plan.
3
Set employer burden with finance
Payroll taxes and benefits vary a lot by country and company. The example uses 20% of base as a placeholder; replace it with your own rate.
4
Look at the 80% column first
Cost of sales is highest when attainment is lowest because base does not flex. If the 80% column is unacceptable, the fix is usually quota or headcount, not accelerator rates.

Frequently asked questions

How do you calculate cost of sales for a sales team?

Add base salaries, variable pay, and employer burden for everyone in the sales org, then divide by bookings for the same period. In the example, 3,379,200 / 9,600,000 = 35.2% at 100% attainment.

Why does cost of sales go down when reps over-perform?

Base pay is fixed, so each extra booking dollar only adds variable pay. Even with accelerators, the marginal cost of upside bookings is usually below the average cost at plan.

What is a good cost of sales percentage?

It depends on deal size, cycle length, and growth stage, so there is no single benchmark worth quoting. Track your own trend over time and compare the marginal cost of upside with the average.