Definition
Sales capacity is the bookings output a sales team can produce in a period given headcount, quota per rep, expected attainment, and ramp.
Formula
Capacity ~ reps * quota per rep * attainment * ramp factor (ramped + ramping productivity)
Example
10 reps * $150k quota * 85% attainment * 0.82 ramp factor ~= $1.045M capacity.
How to use it
- Separate ramped and ramping reps to avoid over-forecasting.
- Pair capacity with pipeline coverage; capacity without pipeline is theoretical.
- Track capacity by segment because attainment and ACV vary.
- Use monthly ramp curves to capture mid-period hiring impacts.
Common mistakes
- Treating all reps as fully ramped.
- Assuming attainment is stable across segments.
- Ignoring seasonality and sales cycle timing.
Why this matters
This term matters because small changes compound in SaaS metrics. Use consistent definitions by cohort and segment so you can diagnose retention, payback, and growth quality.
Practical checklist
- Write a 1-line definition for "Sales Capacity" that your team will use consistently.
- Keep the time window consistent (weekly/monthly/quarterly) when comparing trends.
- Segment results (channel/plan/cohort) before drawing big conclusions from blended averages.
- Use a calculator that references this term (e.g., Sales Capacity Calculator (with Ramp)) to sanity-check assumptions.
- Read the related guide (e.g., Sales capacity planning: quota, attainment, ramp, and what to watch) for context and common pitfalls.
Where to use this on MetricKit
Calculators
- Sales Capacity Calculator (with Ramp): Estimate period bookings capacity from team size, quota per rep, expected attainment, and ramped vs ramping mix.
- Quota Attainment Calculator: Calculate quota attainment and pacing from booked revenue to date, quota, and days elapsed in the period.
- Pipeline Coverage Calculator: Compute pipeline coverage ratio and expected bookings from pipeline and win rate.
- Sales Quota Calculator (Team to Rep): Sales quota calculator to estimate quota per rep from a team target using expected attainment, ramp mix, and optional pipeline coverage checks.
Guides
- Sales capacity planning: quota, attainment, ramp, and what to watch: A practical guide to sales capacity: estimate bookings capacity using headcount, quota, expected attainment, and ramped vs ramping mix.
- Sales quota setting: a practical framework (capacity, pipeline, and ramp): Learn how to set sales quota using capacity math, pipeline coverage, and ramp assumptions, plus a sales quota calculator to sanity-check targets.
- Sales ops metrics hub: quota, pipeline, win rate, and capacity planning: A practical hub for sales ops planning: quota attainment, pipeline coverage, required pipeline, sales capacity with ramp, and OTE math.
- Pipeline coverage and sales cycle math: set realistic targets (and avoid sandbagging): A practical guide to pipeline coverage: connect quota, win rate, sales cycle length, and CAC/payback constraints to set realistic growth targets.