Sales Hire ROI Calculator
The full cost of a new sales hire is almost always underestimated. This tool builds the true first-year employment cost, models ramp time to quota, and finds the month the hire becomes ROI-positive across conservative, base and optimistic scenarios.
Three-scenario analysis
| Scenario | Attainment | Year 1 revenue | ROI month |
|---|---|---|---|
| Conservative | 60% | $200,000 | Month 12 |
| Base case | 80% | $253,333 | Month 8 |
| Optimistic | 105% | $320,000 | Month 7 |
How the ROI month is found
- One-time costs (recruiting and onboarding) land in month 1.
- Monthly cost is salary plus benefits, commission scaled to the scenario's attainment, tools and travel, each divided by 12.
- Monthly gross margin is monthly quota times attainment times gross margin: ramp attainment during the ramp months, scenario attainment after.
- ROI month is the first month where cumulative gross margin covers cumulative cost, checked over 36 months.
Commission is charged at the scenario attainment from month 1, including the ramp, which makes the ROI month slightly conservative. Year 1 revenue counts the ramp months at ramp attainment and the remaining months at scenario attainment.
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