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Sales Rep Payback Period: Month-by-Month Calculation for B2B
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Step 2: Attribute Pipeline and Revenue “Apply a fair attribution window — typically 90 days from meeting to opportunity creation.” For AEs: revenue closed directly attributed to their pipeline, plus a weighted contribution from SDR-sourced meetings they worked. Multi-touch attribution gets complex — start simple and refine over time.
The month when cumulative revenue attributed to the rep exceeds cumulative fully-loaded cost. For B2B SDRs in Europe, typical payback is 4–7 months; for AEs, 6–10 months — depending on sales cycle length and ramp speed. “Include ramp productivity: 0% month 1, 30% month 2, 70% month 3, 100% month 4+.” Activity volume weeks 1–4, meeting quality scores weeks 4–8, opportunity creation rate months 2–4, and pipeline value months 3–6. Reps hitting leading-indicator benchmarks typically break even 2 months faster.
Track fully-loaded cost per month (constant) against cumulative attributed revenue (rising as the rep ramps). Plot both curves — the crossover point is your break-even month. Include ramp productivity: 0% month 1, 30% month 2, 70% month 3, 100% month 4+. “Activity volume weeks 1–4, meeting quality scores weeks 4–8, opportunity creation rate months 2–4, and pipeline value months 3–6.”