Why Use This Calculator?
It helps determine how much you are spending on sales resources to close a single deal over a given timeframe.
Formulas
\(\text{Total Cost} = \text{Cycle Length} \times (\text{AE Daily Cost} + \text{SDR Daily Cost})\)
Comparison Table
| Metric | SMB | Enterprise | |—|—|—| | Cycle Length | 30 Days | 120-180 Days |
Step-by-Step Guide
- Enter your average sales cycle length in days.
- Enter your AE’s daily cost.
- Enter your SDR’s daily cost.
- Review the Total Sales Cycle Cost.
FAQs
What is a sales cycle?
The time it takes from initial contact to a closed-won deal.
Why measure the cost?
To ensure your Customer Acquisition Cost (CAC) is sustainable.
How to calculate daily AE cost?
Divide the AE’s annual OTE by working days (approx 260).
Does this include marketing costs?
No, this specifically measures sales personnel costs over the cycle duration.
How to reduce sales cycle cost?
Shorten the sales cycle or improve closing rates.
Should management costs be included?
They can be, depending on how granular you want your CAC model to be.