| Scenario | Leads | Close % | Avg Deal | Margin % | Total Hours | Revenue | Net Profit | ROI % |
|---|---|---|---|---|---|---|---|---|
| Baseline | 40 | 15 | $1,200 | 60 | 25 | $7,200 | $3,330 | 336.36 |
| More admin time | 40 | 15 | $1,200 | 60 | 30 | $7,200 | $3,240 | 300.00 |
| Higher close rate | 40 | 22 | $1,200 | 60 | 25 | $10,560 | $5,178 | 447.15 |
1) Expected Revenue
Revenue = Leads × (CloseRate/100) × AvgDealValue
2) Gross Profit
GrossProfit = Revenue × (GrossMargin/100)
3) Costs
TimeCost = TotalHours × HourlyCostCommissionCost = Revenue × (CommissionRate/100)TotalCosts = TimeCost + Overhead + Marketing + Tools + Other + CommissionCost
4) Net Profit and ROI
NetProfit = GrossProfit − TotalCostsROI% = (NetProfit / TotalCosts) × 100NetProfitPerSalesHour = NetProfit / SalesHours
- Choose a timeframe and keep all inputs aligned to it.
- Enter leads, close rate, average deal value, and margin.
- Log sales hours plus non-selling hours for the same period.
- Add hourly cost and any overhead, marketing, or tool costs.
- Click Calculate ROI to view results above the form.
- Use the CSV/PDF buttons to export the latest calculation.
Revenue per Selling Hour
The calculator converts leads, close rate, and average deal value into expected revenue. Revenue follows: Leads × (CloseRate/100) × AvgDeal. For example, 40 leads at 15% and an average deal of 1,200 produces 7,200 in period revenue. Dividing by 14 sales hours yields about 514 revenue per sales hour, a benchmark for prioritizing outreach blocks today.
Profit Drivers and Cost Structure
Gross profit is estimated using your gross margin, then compared against time and operating costs. With a 60% margin, 7,200 revenue becomes 4,320 gross profit. Costs are built from total hours × hourly cost plus overhead, marketing, tools, other expenses, and commission. Using 25 total hours at 18 per hour gives 450 time cost; adding 85 overhead, 40 marketing, 25 tools, 30 other, and 5% commission (360) results in 990 total costs.
Selling Time Ratio and Time Management
Selling time ratio equals sales hours divided by total hours. In the example, 14 of 25 hours is 56%. If you shift two hours from admin to selling while keeping total hours constant, the ratio rises to 64%. The dashboard shows how revenue per sales hour changes, helping you defend high-value time, reduce low-impact meetings, and standardize follow-up workflows.
Break-Even Targets for Planning
Break-even revenue is calculated as TotalCosts ÷ GrossMargin. With 990 costs and 60% margin, break-even revenue is 1,650. The tool also estimates break-even leads: BreakEvenRevenue ÷ (AvgDeal × CloseRate). Using 1,200 and 15%, break-even is about 9.17 leads. Turning targets into calendar commitments makes weekly reviews objective and reduces “busy” work that does not move the pipeline.
Scenario Thinking and ROI Goals
ROI is NetProfit ÷ TotalCosts × 100, so 3,330 net profit on 990 costs equals about 336.36% ROI. When you enter a target ROI, the calculator solves the revenue and lead volume needed. With fixed costs near 630 and a 250% target, revenue required is about 5,188 and leads required about 28.82. Compare scenarios to decide whether to improve close rate, lift deal size, or cut non-selling hours.
FAQs
What timeframe should I choose?
Use the same period for every input. If you track leads and hours weekly, choose Weekly. If you change timeframe, scale leads, hours, and costs together to keep ROI comparable.
How do I estimate hourly cost accurately?
Start with salary plus benefits, then add employer taxes and a reasonable allocation for equipment or support. Divide by productive working hours, not total calendar hours, to avoid understating the real cost of time.
Why might ROI show as negative?
Negative ROI appears when gross profit is lower than total costs. Common causes are low margin, weak close rate, too much non-selling time, or high overhead. Adjust one driver at a time to see which change fixes profitability.
What does Selling Time Ratio tell me?
It shows the share of total effort spent on direct selling. A higher ratio usually improves revenue per hour and clarity. Use it to spot calendar creep and to justify protecting prospecting and follow-up blocks.
How is break-even leads calculated?
The tool first finds break-even revenue as TotalCosts divided by GrossMargin. It then converts revenue to leads using AvgDeal and CloseRate: BreakEvenLeads = BreakEvenRevenue ÷ (AvgDeal × CloseRate).
How should I use Target ROI results?
Treat the required revenue and leads as performance targets. If the required leads feel unrealistic, focus on improving close rate, increasing average deal value, reducing commission, or cutting fixed costs by shortening meetings and automating admin work.