Sales ROI
Return on investment from sales activities relative to the cost of running the sales function
What is Sales ROI?
Sales return on investment (ROI) compares the revenue generated by the sales function with what it cost. It shows whether sales spending pays for itself.
It is used to decide how much to invest in sales headcount, tools and programmes.
How this KPI is measured
- Function
- Sales
- Sub-function
- Sales Cost Management
- Industry
- All Industries
- Type
- Lagging
- Impact
- Financial control
- Unit
- %
- Measurement frequency
- Quarterly / Annual
- Formula
- (Revenue generated − Cost of sales) / Cost of sales × 100
How to calculate it
Subtract cost of sales from revenue generated, divide by cost of sales, and multiply by 100 for a percentage. It can also be quoted as a multiple.
For example, if the sales team generated 6,000,000 of revenue at a cost of 1,500,000, the return is (6,000,000 - 1,500,000) / 1,500,000 = 3, or 300%.
Use gross margin instead of revenue if you want a return in profit terms.
Where it is used
Justifying sales investment
Show what sales returns.
Comparing teams and channels
Find the most efficient.
Planning headcount
Decide on hiring.
How to improve it
Tips and common mistakes
- Long sales cycles delay the return.
- Not all revenue is due to sales alone.
- Use margin for a truer picture.
More Sales kpi library
Build better plans, faster
Join the waitlist for early access to curated insights, flexible templates, and rapid iteration across strategy, planning, and project management.