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Building a sales plan starts with reverse-engineering from your revenue target. Given an annual revenue goal, average contract value (ACV), and close rate, this calculator shows exactly how many deals, leads, and pipeline you need to generate — by month and by year.
The reverse funnel math
Deals needed = Annual Revenue Target ÷ ACV
Leads needed = Deals Needed ÷ Close Rate
Pipeline needed = Leads Needed × ACV (total pipeline value you need to enter)
If your annual target is $1M, ACV is $12k, and close rate is 20%: - 83 deals needed - 417 qualified leads needed - ~7 deals per month, 35 leads per month
What this tells you about hiring
A single SDR (Sales Development Representative) typically generates 40–80 qualified leads per month depending on segment and outbound quality. If your math requires 200+ leads/month, you need 3–5 SDRs or a mature inbound engine. Use these numbers to model headcount requirements before committing to a revenue plan.
Improving the inputs
The highest-leverage change to your quota math: - Close rate: a 5% improvement (from 20% to 25%) reduces leads needed by 20% - ACV: doubling ACV halves the number of deals required - Sales cycle: shorter cycles mean more pipeline turns per year and better capital efficiency
Frequently asked questions
What close rate should I use? Track close rate from qualified lead (discovery call booked) to closed-won. B2B SaaS averages: 15–25% for SMB, 20–30% for mid-market, 30–40% for enterprise (longer funnel, more qualified leads). If you don't know your close rate yet, start with 20%.
How does sales cycle affect pipeline? A 30-day sales cycle means pipeline turns ~12× per year; a 90-day cycle turns 4×. Shorter cycles give you more data, faster iteration, and lower cash requirements for the same revenue target.