Sales Efficiency Ratio Calculator
Calculate your Sales Efficiency Ratio to measure how effectively your sales and marketing investments are generating new revenue. This key SaaS metric helps you evaluate the return on your go-to-market spend and optimize your growth strategy.
Calculate Your Sales Efficiency Ratio
New recurring revenue from new customers and expansions (excluding renewals)
Total sales and marketing expenses for the period
Pro Tips for Optimizing Sales Efficiency
- Analyze sales efficiency by channel to identify your most efficient acquisition sources.
- Track efficiency trends over time to see how changes to your go-to-market strategy impact results.
- Compare sales efficiency across customer segments to determine which customer types yield the best returns.
- Consider "time to efficiency" - newer sales investments typically have lower efficiency until reps ramp up.
- Balance efficiency with growth rate - sometimes it makes sense to accept lower efficiency temporarily to capture market share.
- Include customer success costs in your calculation if they play a significant role in driving expansion revenue.
- Use both gross and net efficiency metrics to understand the impact of churn on your overall go-to-market effectiveness.