Revenue Goal Calculator
Set an annual revenue goal and work backward to the jobs, bookings, and leads you need each month and day. Turns a big scary target into a daily activity number you can actually run.
Work backward from your number
A scary annual goal becomes a daily lead count you can actually run.
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The Revenue Goal Calculator works backward from your target annual revenue to the daily activity you need. First, determine your annual revenue goal (R). Then, estimate your average revenue per job (ARJ)—the typical amount you earn from a single client or sale. Next, calculate the number of jobs needed per year: Jobs per Year = R / ARJ. Convert this to monthly: Jobs per Month = Jobs per Year / 12. To account for sales efficiency, estimate your close rate (CR)—the percentage of leads that become jobs, expressed as a decimal. Leads needed per month = Jobs per Month / CR. Finally, convert to daily leads: Daily Leads = Leads per Month / 22 (assuming 22 working days per month). This calculation is correct because it breaks a large goal into manageable, actionable steps, assuming constant conversion rates and a steady stream of leads. The formula relies on the mathematical relationship: Revenue = Jobs × ARJ, and Jobs = Leads × CR, so by inverting, you get the required input activities. It assumes no seasonality or significant variance in ARJ; adjustments may be needed for businesses with multiple service tiers.
Freelance Web Designer
A freelance web designer sets a revenue goal of $100,000 per year. Her average revenue per job is $5,000 per website project. She closes 40% of leads (CR = 0.4). Jobs per year = $100,000 / $5,000 = 20 jobs. Jobs per month = 20 / 12 ≈ 1.67 jobs per month. Monthly leads = 1.67 / 0.4 ≈ 4.17 leads. Daily leads = 4.17 / 22 ≈ 0.19 leads per day, meaning she needs about 1 lead every 5 days to hit her target.
Home Service Contractor
A plumbing contractor targets $250,000 in annual revenue. His average job brings in $800 per service call. His close rate is 70% (CR = 0.7). Jobs per year = $250,000 / $800 = 312.5 jobs. Jobs per month = 312.5 / 12 ≈ 26.04 jobs. Monthly leads = 26.04 / 0.7 ≈ 37.2 leads. Daily leads = 37.2 / 22 ≈ 1.69 leads per day, so he needs roughly 1-2 leads daily to reach his goal.
Consulting Firm Partner
A management consultant aims for $500,000 in annual revenue. She averages $15,000 per consulting engagement. Her close rate is 30% (CR = 0.3). Jobs per year = $500,000 / $15,000 ≈ 33.33 jobs. Jobs per month = 33.33 / 12 ≈ 2.78 jobs. Monthly leads = 2.78 / 0.3 ≈ 9.27 leads. Daily leads = 9.27 / 22 ≈ 0.42 leads per day, meaning about 1 lead every 2-3 days.
What constitutes a 'good' daily lead number depends entirely on your business model, pricing, and conversion efficiency. For low-ticket services (e.g., $100 per job), you may need several leads per day, while high-ticket consulting ($10,000+) may require only a few leads per month. There is no universal benchmark; instead, focus on the trend: if your daily lead requirement is consistently rising, you may need to increase your ARJ or improve your close rate. A realistic range for close rate is 20-80%, with 30-50% common for service businesses. Average revenue per job varies widely—from $50 for simple tasks to $50,000 for complex projects. Use the calculator as a planning tool, not a guarantee; actual results depend on market conditions, effort, and lead quality. Revisit your inputs quarterly to adjust for seasonality or changes in pricing.
A common mistake is using an overly optimistic close rate (e.g., 90%) without historical data, leading to unrealistic daily lead targets. Another is ignoring seasonality: if your business is seasonal, dividing by 12 may undercount busy months and overcount slow ones—adjust by using months with consistent activity. Some users forget to account for the time between lead generation and job start, so daily leads may need to be generated weeks in advance. Edge cases include businesses with zero jobs in a month (e.g., due to vacation) or extremely high ARJ where fractional jobs per month occur—rounding up or down can distort the daily number. Also, if you have multiple service tiers, using a simple average ARJ can mislead; use a weighted average instead. Finally, the calculator assumes a linear relationship, but in reality, doubling leads doesn't always double jobs due to capacity constraints.
- Average Revenue per Job (ARJ)
- The typical amount of revenue generated from a single completed job, sale, or contract.
- Close Rate (CR)
- The percentage of leads that convert into paying jobs, expressed as a decimal between 0 and 1.
- Leads
- Potential clients or prospects who have expressed interest and are actively pursued for a sale.
- Jobs per Month
- The number of completed projects or sales needed each month to achieve your annual revenue goal.
How do I find my average revenue per job?
Take your total revenue from the past year and divide it by the number of jobs completed in that period.
What if my close rate changes month to month?
Use an average close rate over the last 6-12 months for a more stable figure, and update it quarterly.
Is the daily lead number exact?
No, it's an estimate; treat it as a target to aim for, not a guarantee, and adjust based on real performance.
What if I have multiple service prices?
Calculate a weighted average revenue per job by multiplying each price by its frequency, then summing.
Should I include weekends in working days?
The calculator uses 22 working days per month (Monday-Friday), but you can adjust to 30 if you work every day.
Can I use this for product sales?
Yes, just treat 'job' as a sale unit and 'average revenue per job' as average order value.
What if my goal changes mid-year?
Recalculate with the remaining months and adjust your monthly targets accordingly.
How often should I check this?
Review monthly to see if you're on track, and adjust inputs if your actual close rate or ARJ changes.
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