Capacity is headcount * productivity
Sales capacity is the output your team can produce given how many reps you have and how productive they are. Productivity depends on attainment, territory, deal quality, and ramp.
A practical capacity model
- Start with quota per rep for the period.
- Apply expected attainment for ramped reps.
- Adjust for ramp: new reps contribute less than ramped reps.
- Sanity-check that you have enough pipeline to feed the capacity.
A simple formula (ramped vs ramping)
| Component | Input | Contribution (example) |
|---|---|---|
| Ramped reps | ramped_reps * quota * attainment | 7 reps * $150k * 85% = $892.5k |
| Ramping reps | ramping_reps * quota * ramp_productivity | 3 reps * $150k * 40% = $180k |
| Total capacity | sum | $1.0725M bookings capacity |
Model capacity by month, not just in aggregate
- Staggered hiring creates mid-quarter capacity dips that averages hide.
- Apply a ramp curve (month 1, 2, 3) instead of a single ramp percent.
- Track ramped vs ramping headcount weekly to catch forecast drift.
Pipeline is often the real constraint
- If pipeline coverage is low, capacity math will not save the quarter.
- Align pipeline to time: only include pipeline that can close in the period.
- Check pipeline per rep: too little means idle time, too much means slippage and poor follow-up.
How to use capacity in a hiring plan
- Model ramp by month, not as a single average (timing creates misses).
- Add a buffer for attrition and vacation time (capacity is not 100% available).
- Tie hiring to lead/pipeline generation; hiring without demand increases burn, not bookings.
Common mistakes
- Treating new hires as fully ramped.
- Assuming attainment is stable while pipeline quality changes.
- Forecasting capacity without a pipeline plan (input constraint).
- Using a single attainment number across segments or ACV bands (variance is real).
- Ignoring seasonality and close-rate changes near quarter-end.
- Using capacity math without validating activity and lead volume.
Scenario stress test
- Model attainment +/- 10 points to see capacity sensitivity.
- Use the range to decide if hiring or pipeline is the real constraint.
- Check if capacity swings still align with the team target.