The sales quota calculator helps sales managers set fair, achievable quotas based on company revenue targets, rep capacity, and pipeline metrics. Use both top-down and bottom-up approaches to validate your numbers.
How to Set Sales Quotas
Setting accurate sales quotas requires both a top-down perspective (what the company needs) and a bottom-up validation (what a rep can actually deliver). The sales quota calculator reconciles both approaches.
Top-Down vs. Bottom-Up
Top-down: Revenue target ÷ reps = per-rep quota. Bottom-up: Monthly leads × close rate × deal size × 12 = annual rep capacity. If bottom-up capacity is 20% above top-down quota, the team can likely hit targets with normal attrition. If capacity equals quota, one underperformer causes a miss.
Quota Buffer (Sandbagging for Risk)
Set individual quotas 10-15% above the actual revenue target to buffer against missed quotas, rep turnover, and seasonality. If you need $2M, consider setting quotas such that 70% attainment by your team generates $2M.
FAQ
How do you calculate a sales quota?
Top-down: Divide annual revenue target by number of reps × productivity adjustment. Bottom-up: (Leads × Close Rate × Average Deal Size) = Rep capacity. A good quota should be achievable by 60-70% of reps — if fewer hit it, the quota is too high; if more hit it, it may be too low.
What is quota attainment?
Quota attainment is the percentage of reps hitting their quota. Industry benchmark is 60-70%. Below 50% suggests quotas are too aggressive or reps lack support. Above 80% suggests quotas need to be raised for the next period.
What is OTE (On-Target Earnings)?
OTE is the total compensation a sales rep earns when hitting 100% of quota: base salary + full commission. It's the benchmark for what a fully productive rep costs and expects to earn.
Is this calculator free?
Yes, completely free with no signup.