Target Run Rate Calculator

Example Data Table

A sample pipeline snapshot shows how stage value can translate into expected closes.

Formula Used

• Remaining target: R = max(T − CW, 0)
  T = target revenue, CW = closed-won so far.
• Effective remaining need (buffered): Rᵇ = R × (1 + B/100)
  B adds a safety margin for slippage or discounts.
• Remaining days: D = max(P − E, 0)
  P = period days, E = days elapsed.
• Required daily run rate: RR = Rᵇ / D
  Shows daily pace needed for the rest of the period.
• Close-in-time factor: F = min(1, D / S)
  S = average sales cycle days (0 means no discount).
• Expected closes from pipeline: X = OP × (W/100) × F
  OP = open pipeline, W = win rate percent.
• Pipeline needed to cover remaining need: PN = Rᵇ / ((W/100) × F)
  Compares required pipeline to your current pipeline.
• Deals needed: N = Rᵇ / ADS
  ADS = average deal size.

How to Use This Calculator

1. Enter your period target and how far you are into it.
2. Add your closed-won revenue and current qualified pipeline value.
3. Set win rate and average deal size from recent history.
4. Include sales cycle days to reflect time-to-close reality.
5. Add a buffer if deals commonly slip or discount late.
6. Review run rate, pipeline gap, and weekly deal needs.

Run rate aligns daily effort with period goals

Run rate converts a period target into a clear pace. This calculator uses remaining days and remaining target to compute the required daily run rate. For example, a 150,000 target over 90 days is 1,666.67 per day. If 35 days have elapsed and 42,000 is closed, the remaining target is 108,000. With 55 days left, the required pace becomes 1,963.64 per day, before buffer adjustments.

Pipeline value becomes forecast when conversion is applied

Open pipeline is not revenue until it closes, so the calculator weights pipeline using a win rate assumption. If open pipeline is 180,000 and win rate is 28%, the baseline expected closes equal 50,400. This helps compare today’s position against the target. When closed-won is added, total expected becomes a simple attainment signal. Use win rate from a consistent funnel stage so the forecast is stable across weeks and quarters.

Timing matters through the close‑in‑time factor

Deals need time to progress, so the calculator discounts pipeline if the average sales cycle is longer than time remaining. The close‑in‑time factor is min(1, remaining days ÷ sales cycle days). With 55 days remaining and a 50‑day cycle, the factor is 1.00, but with a 75‑day cycle it drops to 0.73. Expected closes scale with this factor, guiding focus toward late‑stage opportunities and renewals.

Coverage multiples explain whether pipeline is sufficient

Coverage is pipeline divided by buffered remaining need, expressed as a multiple. If buffered need is 116,640 and pipeline is 180,000, coverage is 1.54x. Many teams target 2x to 5x depending on deal volatility, average discounting, and cycle length. The calculator compares coverage to your chosen target multiple and flags gaps. Increase coverage by sourcing new pipeline or improving qualification to protect forecast quality. Track coverage by segment weekly.

Weekly execution converts gaps into a practical plan

Once required daily run rate is known, it is converted into a weekly number to support coaching and reviews. The calculator also estimates deals needed by dividing buffered remaining need by average deal size. If buffered need is 116,640 and average deal size is 12,000, about 9.72 wins are needed. Spread over 7.86 weeks remaining, this is 1.24 wins per week, informing activity goals for each territory.

FAQs

What is a target run rate in CRM terms?

A target run rate is the daily or weekly revenue pace required to reach a period goal. It translates your remaining target and remaining time into a practical performance number for reps and managers.

Should I use bookings or revenue recognized?

Use the metric you are compensated and reviewed on. For most teams that is booked revenue or ARR. Keep the same definition across closed-won and pipeline amounts, and avoid mixing one-time fees with recurring without adjustments.

How do I choose an accurate win rate?

Start with your last two to four quarters for the same deal type and stage definition. Exclude unqualified early-stage deals. If your funnel changed, use the most recent stable segment and update monthly.

Why does the calculator reduce pipeline with sales cycle?

If average cycle is longer than time left, not all pipeline can realistically close. The time factor scales expected closes to reflect urgency, so late-stage deals and renewals carry more weight than early discovery.

What does pipeline coverage multiple mean?

Coverage is pipeline divided by buffered remaining need. A 3x target means you want three dollars of qualified pipeline for every dollar you still need. Higher targets suit volatile deal sizes and low win rates.

How can I improve run rate quickly?

Prioritize deals with confirmed dates, stakeholders, and next steps. Tighten qualification, reduce discounting, and advance decision meetings. If the gap is large, add top-of-funnel volume and partner-sourced opportunities, then monitor coverage weekly.