# Sales Onboarding ROI Calculator

> The exact formula, in seven steps, for turning ramp-time reduction and attrition improvement into a dollar payback period for a structured onboarding investment.

Free calculator/tool for sales leaders. Topic: [Onboarding & Ramp](https://www.peerlab.ai/library/topic/onboarding-ramp/). Published by PeerLab in the [Sales Enablement Resource Library](https://www.peerlab.ai/library/). Source: https://www.peerlab.ai/library/sales-onboarding-roi-calculator/

## How to use it

Fill in your own quota, ramp-time and attrition figures into the blank input table, following the worked example as a guide, to get your program's payback period in months.

## What's inside

- Step 1 formula, Monthly Quota Value
- Step 2 formula, Ramp Time Saved
- Step 3 formula, Value Recovered per Rep (with Ramp Productivity Factor)
- Step 4 formula, Total Annual Value Recovered
- Step 5 formula, Attrition Savings (with Cost-to-Replace default)
- Step 6 formula, Total Annual Return
- Step 7 formula, Payback Period
- Worked numeric example ($600k quota, 8 reps/yr, ~1.2-month payback)
- Blank fill-in-your-numbers input table

Model the payback period of structured onboarding vs. sink-or-swim, in dollars and days-to-quota.

## The formula (7 steps)

**Step 1, Monthly Quota Value**
`Monthly Quota Value = Annual Quota ÷ 12`

**Step 2, Ramp Time Saved**
`Ramp Time Saved (months) = Current Time-to-Full-Ramp − Target Time-to-Full-Ramp (with structured onboarding)`

**Step 3, Value Recovered per Rep**
`Value Recovered per Rep = Ramp Time Saved × Monthly Quota Value × Ramp Productivity Factor`
(Ramp Productivity Factor = the average % of quota a ramping rep produces during the gap you're closing, use 0.5 if you don't have your own data; adjust if you track actual ramp curves.)

**Step 4, Total Annual Value Recovered (Productivity)**
`Total Annual Value Recovered = Value Recovered per Rep × Number of New Reps Hired per Year`

**Step 5, Attrition Savings**
`Attrition Savings = (Status Quo First-Year Attrition % − Structured Onboarding Attrition %) × Number of New Reps × Cost to Replace a Rep`
(Cost to Replace a Rep, use 1.5-2x annual OTE as a placeholder if you don't have your own recruiting + ramp-sunk-cost number.)

**Step 6: Total Annual Return**
`Total Annual Return = Total Annual Value Recovered + Attrition Savings`

**Step 7: Payback Period**
`Payback Period (months) = (Total Program Build & Run Cost ÷ Total Annual Return) × 12`

## Worked example

| Input | Value |
|---|---|
| Annual quota per rep | $600,000 |
| Monthly quota value | $50,000 |
| Current time-to-full-ramp (sink-or-swim) | 6 months |
| Target time-to-full-ramp (structured onboarding) | 4 months |
| Ramp time saved | 2 months |
| Ramp productivity factor | 0.5 |
| Value recovered per rep | 2 × $50,000 × 0.5 = **$50,000** |
| New reps hired per year | 8 |
| Total annual value recovered | $50,000 × 8 = **$400,000** |
| First-year attrition, sink-or-swim | 35% |
| First-year attrition, structured onboarding | 20% |
| Cost to replace a rep (1.5x OTE, OTE $120k) | $180,000 |
| Attrition savings | (35%-20%) × 8 × $180,000 = **$216,000** |
| **Total annual return** | **$616,000** |
| Program build & run cost (content, trainer time, tools, cohort 1) | $60,000 |
| **Payback period** | ($60,000 ÷ $616,000) × 12 = **~1.2 months** |

## Your numbers, fill in the blanks

| Input | Your value |
|---|---|
| Annual quota per rep | $______ |
| Monthly quota value (÷12) | $______ |
| Current time-to-full-ramp | ______ months |
| Target time-to-full-ramp | ______ months |
| Ramp time saved | ______ months |
| Ramp productivity factor (default 0.5) | ______ |
| Value recovered per rep | $______ |
| New reps hired per year | ______ |
| Total annual value recovered | $______ |
| First-year attrition, status quo | ______% |
| First-year attrition, target | ______% |
| Cost to replace a rep | $______ |
| Attrition savings | $______ |
| **Total annual return** | $______ |
| Program build & run cost | $______ |
| **Payback period (months)** | ______ |

## Notes on the assumptions
- If you have real ramp-curve data (% of quota by month), replace the 0.5 productivity factor with your actual average: it materially changes the answer
- Attrition savings is usually the larger number for orgs with heavy hiring volume; productivity recovery is usually larger for orgs with high quota/high deal-size reps
- Recompute this annually: both time-to-ramp and attrition should move as the program matures, and the payback period should shrink each cohort