How to calculate MQL to SQL conversion rate
The MQL to SQL conversion rate measures the quality of the marketing-to-sales handoff. It is where the two teams either align or blame each other, so measuring it precisely is the first step to fixing friction.
The calculation is simple; the value comes from segmenting it by source and closing the feedback loop, so marketing learns which programs produce leads sales will accept.
- SQLs / MQLs The formula
- 20 to 40% Healthy range
- By source Where to segment
Short answer
MQL to SQL conversion rate is the share of marketing-qualified leads that sales accepts as sales-qualified. Divide the number of SQLs by the number of MQLs in the period, then multiply by 100. If sales accepted 90 of 300 MQLs, the rate is 30 percent. A low rate signals loose MQL criteria or poor lead quality.
Step by step
Agree on MQL and SQL definitions
Both teams must share definitions for what makes a lead an MQL and an SQL, or the rate is meaningless. Document them.
Count MQLs and SQLs
Count the MQLs marketing passed and the SQLs sales accepted in the period, from the same cohort.
Divide SQLs by MQLs
MQL to SQL conversion rate equals SQLs divided by MQLs, times 100. Break it out by source and campaign.
Close the feedback loop
When sales rejects an MQL, capture the reason and feed it back to marketing, so MQL criteria and targeting improve over time.
Worked example
In the quarter, marketing passed 500 MQLs. Sales accepted 150 as SQLs. MQL to SQL conversion = 150 / 500 = 30 percent, a healthy rate.
But if one channel's MQLs convert at 45 percent and another's at 10 percent, the blended 30 percent hides a quality problem in the second channel. Segmenting by source shows where to tighten targeting or shift spend.
How Ardovo handles it
Ardovo tracks MQL to SQL conversion by source and campaign on shared data, and captures rejection reasons for the feedback loop. Rook flags sources whose MQLs rarely convert, so marketing stops optimizing for volume that sales will not accept.
Frequently asked questions
What is the MQL to SQL conversion rate formula?
SQLs accepted by sales divided by MQLs passed by marketing, times 100, from the same cohort. It measures the quality of the marketing-to-sales handoff and depends on shared MQL and SQL definitions.
What is a good MQL to SQL conversion rate?
Commonly 20 to 40 percent. Below 20 percent usually means loose MQL criteria or poor lead quality; above 50 percent can mean marketing is being too conservative and limiting the volume it passes to sales.
How do I improve MQL to SQL conversion?
Tighten MQL criteria with sales, score for fit as well as engagement, and close the feedback loop so rejection reasons improve targeting. Segmenting by source reveals which channels produce leads sales actually accepts.