What is Foolsaurus?

It's a glossary of investing terms edited and maintained by our analysts, writers and YOU, our Foolish community. Get Started Now!


How to Calculate Close Ratio

Original post by Matt McGew of Demand Media

A close ratio is a term used in sales to describe a salesperson's or sales department's success in completing sales for products or services. This ratio expresses the closed sales as a percentage of total sales presentations made. Businesses use this ratio to evaluate sales performance, industry trends, pricing and products and services offered by the business.

Step 1

Determine the total number of closed sales made by the salesperson or sales department over a period of time. For example, assume a salesperson made 100 sales presentations in 1 month.

Step 2

Determine the total number of closed sales made during the same period of time. For example, assume during the same month, the salesperson made 30 sales.

Step 3

Divide the closed sales by the total sales made. Continuing the same example, 30 / 100 = 30 percent. This figure represents the close ratio for the salesperson.

                   

References

About the Author

Since 1992 Matt McGew has provided content for on and offline businesses and publications. Previous work has appeared in the "Los Angeles Times," Travelocity and "GQ Magazine." McGew specializes in search engine optimization and has a Master of Arts in journalism from New York University.

Advertisement