Definition
Stage conversion rate is the % of records that move from one stage to the next (for example SQL -> Opportunity, Opportunity -> Won).
Formula
Stage conversion = next stage count / prior stage count
Example
If 200 SQLs become 80 opportunities, SQL -> Opportunity conversion is 40%.
How to use it
- Use stage conversion to find bottlenecks in your funnel.
- Keep stage definitions stable; otherwise trends become meaningless.
- Segment by channel or deal size to find weak stages faster.
- Track conversion by rep to diagnose coaching needs.
Common mistakes
- Comparing stages with different entry criteria.
- Mixing time windows between stages and total pipeline.
- Using a single blended rate when segments behave differently.
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 "Stage Conversion Rate" 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.
- Sanity-check with a related calculator from the same category on MetricKit.
- Read the related guide (e.g., Sales ops metrics hub: quota, pipeline, win rate, and capacity planning) for context and common pitfalls.
Where to use this on MetricKit
Calculators
- Net New ARR Calculator: Calculate net new ARR from new, expansion, contraction, and churned ARR movements.
- ARR Waterfall Calculator: Build an ARR waterfall: starting ARR + new + expansion - contraction - churn = ending ARR.
- Burn Multiple Calculator: Calculate burn multiple: net burn / net new ARR (a growth efficiency metric).
- Unit Economics Calculator: Model CAC, payback, LTV, and LTV:CAC together from ARPA, gross margin, and churn.
- Bookings vs ARR Calculator: Compare bookings vs ARR (and cash) for a contract with term length and one-time fees.
Guides
- 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.