SalesLyt

Revenue Target Calculator

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Sales revenue target calculator

Answer a few questions to estimate the marketing and sales effort required to hit your revenue target. The calculator works backwards through your funnel — from the contracts you need, to the strangers you have to reach.

  • Works backwards from your target
  • Four funnel stages
  • Instant results
  • No signup — nothing stored
Timeframe

Your funnel conversion rates

Fill in your target, average revenue per unit and the three conversion rates to see how many leads the funnel needs.

How it works backwards

Four divisions, each feeding the next. Start at the revenue you want and end at the number of people who have to hear about you.

  1. 01Units to sellrevenue target ÷ average revenue per unit
  2. 02SQLs neededunits ÷ (SQL→contract rate ÷ 100)
  3. 03MQLs neededSQLs ÷ (MQL→SQL rate ÷ 100)
  4. 04Strangers neededMQLs ÷ (stranger→MQL rate ÷ 100)

Questions worth asking at each stage

The numbers tell you what the funnel demands. These tell you whether you can actually deliver it.

Stage 01 · Strangers

Do we have enough people at the top of the funnel?

Are there enough visitors on the website, and do we attend enough events to meet relevant strangers? Do we have an efficient method of increasing both numbers?

Stage 02 · Marketing Qualified Leads

Do we have a nurturing process?

Can we turn visitors and strangers into acquaintances — by offering something worthwhile in return for their contact details, or through structured networking?

Stage 03 · Sales Qualified Leads

Do we have a qualification procedure?

Can we reliably distil the true sales opportunities from a pool of merely interesting acquaintances, rather than pursuing everyone equally?

Stage 04 · Contracts

Do we close effectively?

Do we have an effective process for creating, negotiating and winning proposals, so qualified opportunities actually convert?

Why a target only becomes useful once you divide it

  1. 01

    A revenue target on its own is not actionable. Divided through your conversion rates it becomes a lead volume, which is something a team can actually work towards.

  2. 02

    Small changes in the earliest conversion rate move the top of the funnel enormously, because every later stage divides into it.

  3. 03

    If the number of strangers the funnel demands is implausible, the honest conclusion is that the target needs revisiting — or the conversion rates do.

Frequently asked questions

What are MQLs and SQLs?
A Marketing Qualified Lead is someone who has shown enough interest — downloaded something, attended a webinar, filled in a form — that marketing considers them worth pursuing. A Sales Qualified Lead has been vetted further and judged a genuine opportunity worth a salesperson's time. The gap between the two is your qualification process.
Why work backwards from the target?
Because a revenue number on its own is not something anyone can act on. Divided through your conversion rates it becomes a lead volume — and lead volume is something a marketing and sales team can plan, resource and be measured against.
What conversion rates should I use?
Your own, from your CRM, over a period long enough to be meaningful. Industry averages are a fallback, not a substitute — funnel rates vary enormously by deal size, sales cycle and channel. If you are guessing, run the calculator two or three times across a plausible range rather than trusting one figure.
Why is the number of strangers so large?
Because each stage divides by a fraction, and the effects multiply. Three stages at 10%, 20% and 25% mean an end-to-end conversion of just 0.5% — so 200 strangers for every single contract. That compounding is exactly what the calculator exists to make visible.
What if the funnel demands an implausible number of leads?
Then you have learned something useful before committing the quarter to it. Either the target is unrealistic for the current funnel, or a conversion rate needs improving. Raising the earliest rate has the largest effect, because every later stage divides into it.
Are the results rounded?
Yes, always upward. You cannot sell a third of a contract or nurture two-thirds of a lead, so every stage rounds up to the next whole number. That means the figures are the minimum needed to reach the target, not an average.
SalesLyt

Know your real conversion rates, not your estimated ones.

This calculator is only as good as the rates you feed it. SalesLyt tracks every stage of your pipeline, so next time you can use the numbers your team actually produced.

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The SalesLyt dashboard showing pipeline, contacts and performance reporting