How to use the sales goal calculator
- Enter the revenue goal for the period and your average sale price.
- Enter your close rate, the share of leads that become a sale, and the number of working days in the period.
- Enter the revenue so far and the working days used to check your pace.
- Read the sales and leads still needed, the daily and weekly targets for the days left, and whether you are ahead or behind.
Formula
Sales needed = goal / average sale price, rounded up
Leads needed = sales / close rate, rounded up
Expected by now = goal x days used / working days
Pace = revenue so far - expected by now
Sales per remaining day = sales still needed / days left
Sales and leads are rounded up because you cannot close part of a sale. The pace check assumes sales come evenly across the working days.
Worked example
The goal is $120,000 over 60 working days at $2,400 a sale and a 20% close rate. That takes 50 sales and 250 leads in total.
After 25 days you have $38,000. The expected amount by now is $50,000, so you are $12,000 behind. You still need $82,000, which is 35 sales and 175 leads. With 35 days left that is 1 sale a day, or 5 a week.
Turning a goal into daily activity
A large revenue goal is easier to manage when it is broken down into the number of sales, then leads, then days. Working backward through the close rate shows how many conversations you need. If the lead count looks out of reach, you have three levers: raise the average sale, raise the close rate or extend the time.
Reading the pace check
The pace check compares what you have with what an even schedule would have produced by now. Being behind early in a period matters less if your sales usually cluster at the end. If that is true for you, treat the figure as a guide and not a verdict. For a look at where leads drop out before they buy, use the sales funnel calculator.
Connecting to income
If your goal is a personal income target rather than a sales quota, the income goal calculator works backward from take-home pay. To see what commission a sale earns, use the commission calculator.
Assumptions and limits
- The close rate and average sale price are your own figures. They are not predictions.
- Revenue is spread evenly over the working days, with no seasonality or ramp up.
- Sales and leads are rounded up to whole numbers, so totals can be slightly above the goal.
- Repeat customers, returns, discounts and a lagging sales cycle are not modeled.
Frequently asked questions
Why does the calculator round sales up?
A partial sale does not exist, and rounding down would leave you short of the goal. For example, $82,000 at $2,400 is 34.17 sales, so 35 are needed.
What if my days used equals the working days?
The period is over. The calculator then shows the remaining sales and leads but has no days left to spread them across.
Can I use weeks instead of days?
Enter the number of working days in those weeks and the working days per week. The weekly target is the daily target times the days per week.
What does ahead of pace mean?
You have collected more revenue than an even schedule predicts for the days used so far. It does not guarantee you will hit the goal.