Formula
Closed deals are the leads times the close rate. Revenue multiplies those deals by the average deal:
Expected revenue = leads × close rate × average deal
A fractional deal is kept in the revenue. The page does not round deals up to a whole sale.
Assumptions
- Every lead has the same chance of closing.
- Every closed deal has the same average value.
Worked example
400 leads, a 25% close rate, and a $2,000.00 average deal expect revenue of $200,000.00.
Input definitions
- Close rate
- The percent of leads you expect to become a sale.
- Average deal
- The revenue of one closed sale. Zero is allowed.
Limitations
This is a planning estimate, not accounting, tax, payroll, or advertising advice. The currency control changes the symbol only.
Questions
How is this different from conversion rate?
Conversion rate is a percent of visitors. This page forecasts revenue from leads and a deal size.
What if the close rate is zero?
Expected revenue is zero.