How to calculate revenue per rep
Revenue per rep is a headline sales-productivity metric and a key input to capacity planning. It tells you how much a typical seller produces, which sets how many reps you need to hit a revenue target.
The accuracy depends on the denominator. Counting ramping reps drags the number down and understates the productivity of your fully ramped team, so segment by tenure.
- Revenue / reps The formula
- Fully ramped For a true read
- Capacity planning Its main use
Short answer
Revenue per rep measures sales productivity. Divide total sales revenue (or bookings) in a period by the number of quota-carrying reps. If a team of 10 reps booked 10,000,000 dollars, revenue per rep is 1,000,000 dollars. Use fully ramped reps for a true productivity read, and use it to plan hiring and capacity.
Step by step
Total sales revenue or bookings
Sum the revenue or bookings the sales team produced in the period, on a consistent basis.
Count quota-carrying reps
Count the reps who carry a quota. For a productivity read, use fully ramped reps; for a blended capacity number, include ramping reps but note it.
Divide revenue by reps
Revenue per rep equals total revenue divided by the number of reps. Segment by tenure and team for a meaningful figure.
Use it for capacity planning
Divide your revenue target by revenue per rep to estimate how many fully ramped reps you need, then add for ramp time and expected attrition.
Worked example
Your fully ramped team of 8 reps booked 12,000,000 dollars last year, so revenue per rep is 1,500,000 dollars. To hit a 21,000,000 dollar target next year, you need about 14 fully ramped reps (21,000,000 divided by 1,500,000).
Accounting for a 5-month ramp and some attrition, you would hire more than the six additional reps the raw math implies, and earlier, so they are productive when you need them.
How Ardovo handles it
Ardovo computes revenue per rep segmented by tenure and team, so ramping reps do not distort the productivity read. Rook turns it into a capacity plan, factoring ramp time and attrition to tell you how many reps to hire and when.
Frequently asked questions
What is the revenue per rep formula?
Total sales revenue or bookings in a period divided by the number of quota-carrying reps. Use fully ramped reps for a true productivity read; include ramping reps only for a blended capacity view, and note it.
Why exclude ramping reps from revenue per rep?
Because they are not yet at full productivity, so counting them drags the number down and understates your fully ramped team's output. Segmenting by tenure gives an accurate productivity figure for planning.
How do I use revenue per rep for hiring?
Divide your revenue target by revenue per rep to estimate the fully ramped headcount needed, then hire additional reps earlier to cover ramp time and expected attrition, so capacity is ready when the target is due.