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How to Calculate Sales Leads to Close Ratio

One of the most important tasks business owners and sales professionals need to do is to track results. Knowing what marketing methods generate the most sales can help you focus on the tasks that generate money. One way to track your effectiveness is by calculating your sales leads to close ratio.

Turn your answer into a percentage. Most lead to sale ratios are described in percentages. Using the example above, divide 1 by 5 to get 0.20, or 20 percent (move the decimal two places to the right or multiply by 100 to get the percentage). In this case, you're closing 20 percent of the leads you received.

Divide the number of sales leads by the number of closed sales. For example, if you had 100 leads and closed 20 sales, you'd divide 100 by 20 to get 5. This tells you that, on average, for every 5 leads you're getting 1 sale; in other words, a closing ratio of 1 out of 5.

Choose a period of time and gather the number of leads and the number of closed sales during that time frame. You can calculate the ratio for any time period (the year, a week, etc.), but for the most accurate results, choose a longer time period such as the last three months.

Difficulty: Easy

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