For any business, the ultimate objectives of success are synonymous with high profitability and massive revenue generation. Needless to say, companies become profitable from the virtue of their sales performance. All the investments and streamlining of processes are eventually meant to drive high sales and hence bring greater value to the company in terms of revenue. Having said that, it becomes paramount to constantly track the sales performance to ensure that the sales targets are on the right track and the sales teams are performing well in the pursuit of boosting sales. Presented below is an exhaustive list of the most relevant key performance indicators with calculators to gauge sales performance.

List of KPIs and calculators to assess sales performance

1. Customer Churn Rate

To gauge the success of a company in terms of its sales, customer churn or attrition rate is a highly crucial performance indicator. To explain, the customer churn rate represents the number of customers within a specific time period who discontinue using the goods or services of a business. This loss of customers is directly linked to declining sales and hence revenue losses for the company.

Customer churn rate as a KPI

Customer churn rate is a quantitative measure of the performance of a company’s customer retention strategies. It can help the top management understand how many customers is the company losing and for what reasons. Subsequently, to boost sales, companies can think of more improvised strategies to keep customer churn rate and the linked loss of sales under check. In fact, it is a very vital sales performance indicator for businesses that generate recurring monthly revenue from subscription services or via other business models.

How to calculate customer churn rate?

The formula for customer churn rate is presented below

Customer churn rate = No. of customers at month starting - No. of customers at month-end
No. of customers at the beginning of the month


Number of customers at the beginning of the month = 700

Number of customers at month-end = 620

Churn rate = 0.11 or 11 percent

Customer Churn Rate Calculator


2. Sales Growth

The sales success of a company will always be directly linked to the growth in sales. Sales growth represents an increase or decrease in current sales when compared to the sales in the previous period. Needless to say, for companies to succeed, the sales growth has to be positive and impressive in a way that it represents an incremental hike in sales and hence, company revenues. In fact, sales growth is one of the simplest and most relevant measures of the success of the sales strategies of a company.

Sales growth as a KPI

By tracking sales growth percentage in a constant manner, the sales managers can effectively gauge the progress of their sales strategies and the processes initiated with the aim of boosting sales. Positive sales growth will imply that the company is doing well in terms of promoting higher sales and the strategies are paying off. Sales managers can quickly gauge the gap by which sales in the current period have increased or decreased against the previous period. If it is identified that the sales growth is low, a gap analysis of the strategies needs to be conducted and refinements need to be made.

How to calculate the sales growth percentage?

Sales growth percentage can be computed using the following formula-

Sales growth = Value of sales in the current period - Value of sales in the previous period
Value of sales in the previous period


Value of sales in the current period = USD 300,000

Value of sales in the previous period = USD 240,000

Sales growth = 0.25 or 25 percent (showing positive sales growth)

Sales Growth Calculator


3. Average revenue per user

ARPU is a simple yet vital performance metric when it comes to evaluating the sales success of a company. The average revenue per user represents the average earnings per customer with respect to all the sales made by the company. It is critical to note that the average revenue per user should always be higher than the average cost per acquisition for a company to make its revenue profitable.


When the ARPU is increasing for a company, it indicates greater customer acquisition of customers with high purchasing power or users subscribing to more expensive products or services. In either case, ARPU gives a realistic measure of sales strategies’ success. When new product lines are launched or innovations are brought in sales strategies, ARPU should be tracked to gauge success in quantifiable terms.

How to calculate ARPU?

Given below is the formula used to calculate ARPU

ARPU = Total revenue generated in a specific time period
Total number of users corresponding to that period


Total revenue generated in a specific time period = USD 70000

Total number of users corresponding to that period = 35

ARPU = USD 2000

Average revenue per user Calculator


4. Average purchase value

In measuring business success in terms of sales, it is essential to look at the average value of each sales transaction. That is exactly what average purchase value does as a credible metric for evaluating sales success. As obvious, companies will always aim for a higher average purchase value as that would lead to higher revenue and profitability.

Average purchase value as a KPI

As a KPI, the average purchase value can be used effectively to measure the volume of sales in each transaction. Moreover, it can also be used as an effective metric to gauge the sales performance of premium goods or services. A higher purchase value will hint at larger volume of sales or promising sales performance of the premium segment offerings. As a KPI, average purchase value can also be used for revenue projections.

How to calculate average purchase value?

The formula that yields the average purchase value is given below

Average purchase value = Total revenue generated during a time period
Number of purchases made in that period


Total monthly revenue = USD 500,0000

Number of purchases/ transactions = 1500

Average purchase value = USD 3333.3

Average revenue per user Calculator


5. Revenue per sales representative

While measuring the overall sales performance of a company, it is equally important to look into the individual performance of each sales representative. This performance is to be measured in terms of the revenue they bring to the company. Needless to say, great individual performances by sales representatives will improve team performance and eventually add to the company’s success. Revenue per sales representative is a monetary expression of the revenue that each representative brings from sales of the company’s products or services.

Revenue per sales representative as a KPI

This KPI will help sales managers track the performance of each individual sales representative proportionate to the designated sales targets. Also, it will help in identifying the best performers who bring the highest sales revenue. These performers can be appreciated to improve the overall performance of the team. Besides, revenue per sales representative can be an effective measure that can be used to set realistic, measurable, and attainable sales goals. Moreover, the average revenue per sales representative can be used as a direct measure to evaluate the team's performance.

How to calculate average revenue per sales rep?

The formula to compute the average sales per representative is given below -

Total revenue generated from sales in a period  
Number of sales representatives


Total revenue in a given period = USD 750,000

Number of sales representatives = 45

Average revenue per sales representative = USD 16666.6

Average revenue per user Calculator


6. Average sales cycle length

The sales cycle length is the duration that it takes between the first contact with a prospective lead and the closing of the deal. When looked at in terms of average, the sales cycle length is averaged in accordance with all the closed deals.

Average sales cycle length as a KPI

In terms of measuring sales performance, this KPI has a very salient role to play. It can give the sales managers a direct and quantifiable idea of how fast or slow leads are moving through the funnel. Besides, it can also be a highly relevant metric to measure the effectiveness of salespeople in closing deals.

How to calculate average sales cycle length?

The formula is mentioned below -

Average sales cycle length = Total number of days for all closed deals
Number of closed deals


Summation of No. of days from first contact to conversion for all deals = 12000

Number of closed deals = 70

Average sales cycle length = 171. 4

Average revenue per user Calculator


7. Purchase frequency of a customer

In simple terms, a customer’s purchase frequency denotes the number of times a customer makes a purchase with a business in a specified period, usually one year. As a metric, purchase frequency helps in determining the profitability of a customer and also helps in understanding customers’ purchasing patterns and behaviors. When the purchase frequency of a customer will be high, the customer will be more valuable to the company in terms of sales and revenue.

Purchase frequency as a KPI

Purchase frequency as a metric gives real insights into the purchasing patterns of customers. A high purchase frequency among customers will lead to greater profitability while a low purchase frequency will hint at the need for refining sales strategies or launching customer loyalty programs. In fact, as a KPI, the purchase frequency can be effectively used to assess the success of customer loyalty programs and reward programs that aim at drawing customers into more frequent purchases.

How to calculate purchase frequency?

The formula to determine the purchase frequency is added below-

Purchase frequency = Number of unique purchases
Total number of customers


Number of unique orders in a time frame = 370

Total number of customers = 170

Purchase frequency = 2.17

Purchase frequency of a customer Calculator


8. Loss in sales due to supply issues

This metric helps in understanding and ascertaining the effectiveness of a company in terms of stocking inventory to meet the demand of customers. Besides, it also helps in gauging the efficiency of a company in forecasting demand, vendor management and control of inventory. This metric gives a quantitative assessment of sales value lost by a company because of supply issues.

Loss in sales due to supply issues as a KPI

The percentage of sales lost due to supply issues will help the top management and sales supervisors in identifying the gaps in inventory management, vendor supervision, and demand forecasting. A high percentage would depict that the company is performing poorly with respect to these verticals and needs to bring new strategies and control measures to keep the loss of sales due to supply issues in check. By tracking this metric, companies can also find a quantifiable way to gauge their inventory management efficiency.

How to calculate the loss in sales due to supply issues?

The formula is given below-

Percentage of sales lost due to supply issues = Sales lost due to supply issues (in monetary terms) X 100
The total value of sales in the corresponding period


Worth of sales lost due to supply issues = USD 35000

Total value of sales in the same period = USD 500,000

Percentage of sales lost due to supply issues = 7 percent

Loss in sales due to supply issues Calculator


9. Sales quota attainment

Sales quota attainment is the representation of the time that it takes for a sales team to achieve the target sales. With respect to the current sales, this metric will help in determining the expected time that it will take for the sales team to hit the target. Having said that, in terms of tracking the milestone of target sales value, sales quota attainment proves to be a highly useful and efficient metric providing real and credible insights. At any given point in the timeline of achieving the sales target, the sales quota attainment gives a quantitative measure of the percentage of the overall sales target achieved thus far.

Sales quota attainment as a KPI

As mentioned above, by tracking the sales quota attainment, sales managers and the top management can constantly evaluate the performance of sales teams and sales representatives. Besides, this metric can be effectively used to set realistic and measurable targets for the sales team as the progress can be consistently tracked using this measure. By prioritizing this KPI, the sales managers can drive greater efficiency in the sales team as the teams will be able to track their current sales performance at any given time.

How to calculate sales quota attainment?

The formula that yields the sales quota attainment is given below-

Sales quota attainment = Current Sales X 100
Target Sales

Sales quota attainment Calculator


10. Qualified leads

Lead generation is a key objective of marketing as leads further get converted and drive the sales of a company. Qualified leads are the leads that are most likely to be converted. In simple terms, a qualified lead is a potential customer for a business with respect to pre-defined criteria by the company. In the usual sense, qualified leads are associated with the willingness of the leads for sharing their information and showing interest in the company’s offerings freely.

Qualified leads are further classified into the following categorization

  • Marketing qualified leads
  • Product qualified leads
  • Sales qualified leads

Qualified leads as a KPI

Given the fact that the sales funnels are quite complicated and not all leads have the same potential for conversion, the KPI of qualified leads enables businesses to identify the highest potential leads and segment them differently. Subsequently, after this segregation, the sales team can channel greater efforts to the qualified leads given the high potential for sales conversion. The qualified leads can be approached with different strategies like offering special discounts or incentives.

11. Percentage of online sales revenue

In the fast-changing business environment where e-commerce sales are on the rise, it is essential for businesses to track the share of online sales as a percentage of total sales. A more refined measure will be to track the success of e-commerce channels in terms of revenue generated by them. Companies can determine if they have been successful in catching up with e-commerce trends and if the e-commerce investments are proving to be profitable enough.

Percentage of online sales revenue as a KPI

As a KPI, the percentage of online sales revenue can help businesses track the performance of their online distribution channels, customer experience from online portals, and ease of buying online offered by the company’s digital platforms. Companies can get quick insights into the efficiency and effectiveness of their e-commerce strategies in increasing sales and the contribution of online channels to revenue generation.

How to calculate the percentage share of online sales?

The formula is given below-

Percentage of online sales revenue = Revenue from online sales in specific period X 100
Total revenue from all sales


Revenue from online sales = USD 150,000

Total revenue in the corresponding period = USD 600,000

Percentage of online sales revenue = 25 percent

Percentage of online sales revenue


12. Lead-to-win rate

The lead-to-win rate is an effective measure of the proportion of leads entering the sales funnel that have been closed successfully. This metric holds great imperativeness as a realistic and reliable measure of the sales conversion performance of a sales team or salesperson. In fact, this metric can also play a crucial role in the effective alignment of the marketing and sales teams along with the product development department.

Lead to win rate as a KPI

With this metric, companies or sales supervisors can effectively track the success of product marketing fit, strategies of pricing, and the execution of sales strategies and tactics. Sales supervisors can regularly track the percentage of won leads against the total number of leads entering the sales funnel and hence, plan for better conversion rates by reading between the lines while assessing this metric.

How to calculate lead-to-win rate?

The formula for calculating the lead-to-win rate is given below-

Lead-to-win rate = Count of won leads X 100
Count of total leads


Won leads or successfully closed leads = 120

Total leads = 780

Lead to win rate = 15.38 percent

Count of won leads calculator