Sales Efficiency Calculator: How Much Revenue Are You Getting for Every Dollar Spent?

🚀 If you’re spending money on sales and marketing, one big question you should ask is: Are those dollars actually turning into revenue?

Use our Sales Efficiency Calculator to measure how efficiently your company converts sales and marketing expenses into revenue — so you can tell if your growth engine is actually working.

With the calculator you can compare the performance of multiple teams or for different product lines. Enter the new revenue and the dollar amounts spent on sales and marketing. The tool will calculate the sales efficiency for each.

📊 Sales Efficiency Calculator


    🙋 What Is Sales Efficiency?

    Sales efficiency is a metric that shows how much new revenue your business generates for every dollar you spend on sales and marketing. It’s like a return on investment (ROI), but focused specifically on your go-to-market efforts.

    This is especially useful for:

    • Startups trying to prove growth is sustainable
    • Sales teams looking to optimize budget
    • Investors evaluating operational health

    🔢 Sales Efficiency Formula

    The formula is simple:

    Sales Efficiency = Net New Revenue ÷ Sales & Marketing Spend

    You can express the result as either a decimal (like 0.8 or 1.2) or a percentage (e.g. 120%).

    ✅ Example

    Let’s say your company spent $50,000 on sales and marketing last quarter, and brought in $65,000 in net new revenue during the same period.

    Sales Efficiency = 65,000 ÷ 50,000 = 1.3 or 130%

    That means for every $1 spent, you're generating $1.30 in revenue. Pretty efficient!

    If your result is greater than 1 (or 100%), you’re generating more than you spend — that’s good.
    If it's less than 1, you're burning more than you're earning — and it's time to review your strategy.

    📊 Why Sales Efficiency Matters

    Sales efficiency tells you if your customer acquisition costs are sustainable. It helps you:

    • Justify future investment in marketing
    • Compare performance across teams or campaigns
    • Set smarter budgets and revenue goals
    • Signal to investors that your business is scalable

    🎯 Benchmarks (Rough Guidelines)

    • < 1.0 (Below 100%): Inefficient — more money out than in
    • 1.0 to 1.5: Moderate efficiency
    • > 1.5 (150%+): High efficiency — your engine is working!