Learn how to make sure you have enough leads in your sales pipeline with a marketing funnel calculator.

Your marketing funnel calculator tells you how many leads you need in your sales funnel to meet your revenue goals. The marketing funnel calculator is pretty simple math. It’s what goes into it that will take some data collection.

The marketing funnel is segmented into marketing funnel stages. For each of these stages, the marketing team will develop marketing funnel content at each stage. The aim is to move your marketing leads to marketing to the sales pipeline.

Have you been cold called in the past six months? If so, did you enjoy the experience? Did you engage with a salesperson? Did you buy the product or service?

Have you received an unsolicited piece of direct mail or email? Did you enjoy receiving it, or did you just throw it away? Did you buy the product or service that was promoted?

Very few people responded when I asked that question whether a cold call or an unsolicited email started a purchase. 

Most people, when looking for products or services, go to the internet and search on Google’s search platform. There are hundreds of phrases and keywords for which every business owner would give money to ranked at the top of Google. The potential impact on their business is enormous.

97% of consumers used the internet to find a local business, up from 95% in 2016. Click To Tweet

At first, it sounds like a logical approach to get ranked at the top of Google search. However, SEO marketers started to figure out how to cheat the system. They would put in high-traffic words like digital marketing in their marketing content and social media platforms just to attract traffic to their site.

Over time, these tactics became known as black hat tactics. These tactics became more popular, and people became pros at tricking the search engines into ranking their websites for a term. 

The marketing funnel calculator saves time and helps improve your marketing ROI.

It’s essential to understand how the search platforms rank your content. So if you look at Google’s search algorithm, you need lots of inbound links. You need lots of social media authority. You cannot fake your way through it. You need to build your website authentically. 

And if you follow some basic guidelines, you can accomplish these goals and be found on the Google search platform and gain more qualified prospects from Google search. The demand for your business will grow exponentially, and it will change forever your business.

Right now you’re asking yourself this questions:

  • How do I achieve my sales and marketing goals? 
  • How do I organically get a lot of inbound links from other websites? 
  • How do I organically build a large social media following?

 Here are the steps you need to take to drive inbound links and more social media following:

  1. High-quality content (e.g., blogs, webinars, white papers, and ebooks) frequently.
  2. You should participate in social media discussions where your target prospects are already involved in.

This simple strategy will modernize your demand generation strategy. It will align your business with the habits of your target buyer. It will get your business found by the prospects you care about most. 

Not only will you generate lots of traffic from Google, but you also begin developing a valuable social media following. 

Now add a layer of the call to action and landing pages, and you’ll develop an email marketing database. You will amass a sizable blog subscriber list. Prospects will give you the email you can continually send them valuable content you now regularly produce. 

It is these marketing tactics of blogging, creating quality content, and social media participation to drive qualified Google search traffic and is the foundation of inbound marketing. It’s the cornerstone of getting your business found when and where your prospects are searching.

One major mistake modern marketers make when starting on the journey of content marketing, and inbound marketing is a lack of commitment. They set up a blog and social media accounts for their company and brand. They write a few blog posts. They promote their articles on their social media platforms. And nothing happens. They may think marketing doesn’t work for my business.

After doing this for 20 years, it works. You need commitment, a solid content marketing strategy, and patience. As we move into the new year, you can think about it your demand generation and weight loss. 

If you have a goal to lose 20 lbs, you did not hit the gym three times in the first week and lose 20 pounds. You probably remain the same way. However, if you keep it up three times a week for a few months, you lose weight. He began to feel better. Working out becomes part of your routine.

You can no longer imagine a week without getting to the gym a few times. This holds for inbound marketing. You may not see the results after the first week. However, if you create content and participate in social media a few times a week for a few months, you will see results. 

The routine will become ingrained in your broader marketing process. You can no longer imagine a week without creating content taking part in social media. You’ll even do it more often, so it becomes a habit. Your marketing is changed for the better. Commit to the process, and you will see results.

The marketing funnel calculator will calculate your leads and lead nurturing requirements. Use these as a benchmark to further tune the marketing and sales process.

What are the Stages of the Marketing Funnel 

marketing sales funnel

Think of marketing as a sales funnel that has four stages. The brand (top of the funnel), leads (middle of the funnel), sales, and repeat customers (bottom of the funnel).

At the top of the funnel, companies look to build their brand and reach, attracting website visitors, blog subscribers, and social followers. From there, content such as blog posts, webinars, ebooks, and white papers, can move your target audience through the funnel and turn qualified visitors into leads.

These are all included in the marketing funnel calculator.

Once contact information has been gathered, email marketing, retargeting and social engagement marketing strategy will provide value and personalized experience. The goal at this stage is to convert qualified leads into sales. And at the bottom of the funnel, campaigns are developed to increase customer loyalty, driving more sales, referrals, and profits.

These marketing funnel sections represent the overreaching goals of your marketing plan. You must prioritize targets based on your ability to achieve business objectives, and dedicate the time and resources to support high-priority goals.

  • You are building your brand, creating and qualifying new sales leads.
  • Convert sales by turning leads into customers.
  • And increase customer loyalty by building a more loyal and profitable customer base.

Whether you’re running an e-commerce site or a sales team, you will want to receive highly qualified leads. Not all leads are treated the same. Some leads will have a short sale cycle, while others will have a long sales cycle. With your longer sales cycle and people doing their research, you will want to gather their email information early in their search. 

The rule of thumb is about 57% of the sales cycle is already completed before a buyer seeks to speak to a vendor. So you must get out in front of the sales cycle so you can be invited to the dance.

A lot of marketing managers want to dive right into marketing programs. Without understanding how many marketing leads are required to meet the company’s sales revenue goals. Sometimes, it may be an e-commerce site where most of the sales are driven online with no human touch. 

Others may require that there’s enough website traffic to generate enough marketing qualified leads to move through a marketing funnel and then convert over to the sales team and be placed in their sales pipeline. This is a more sophisticated process. We’re a mix of marketing automation, and human interaction with the prospect will be required.

So how many leads do you need from your website every month? Do you know how many leads came from your website last year? And how many of those leads that came from the website closed into sales.

If you have a more complex or expensive product, do you have enough in your sales pipeline generated from marketing leads to meet your sales goals?

If these questions are something that you don’t have right at your fingertips, I suggest you go find out the answers to them before you do any marketing programs. Because once you have those figures, it’s much easier to start to put metrics around your marketing campaigns so they can be tested and then scaled for maximum return on your marketing spend.

What is the marketing funnel?

A marketing funnel describes your customer’s journey with your brand. From the initial stages when someone learns about your business, to the purchasing stage, marketing funnels map routes to conversions and beyond. You have to add metrics to each marketing funnel stages. Then you want to look at marketing to sales funnel maps and conversions.

Part of your marketing funnel calculator is the marketing funnel also called the buyersjouney.

It is your marketing funnel content that will covert your visitors and move them into the next stage of the marketing process. This is not a linear process, therefore, an omnichannel strategy may be needed to reduce your customer acquisition costs.

What are the sales funnel?

Part of your marketing funnel calculator is the sales funnel also called the sales pipeline.

The sales funnel (also known as a revenue funnel or sales process) refers to the buying process that companies lead customers through when purchasing products. The typical sales funnel divided into multiple steps, which differ depending on the particular sales model.

A sales funnel calculator could help but you must map these out first to the way your typical buyer engages with you. Most of your clients have not mapped out their customer journey, nor really implemented an omnichannel marketing strategy.

How do I develop KPI and marketing metrics for my marketing funnel? 

For your marketing funnel, you must figure out the metrics that help you move towards your business goals. What are the most important marketing metrics for your company? 

Let’s say you got a SaaS product. You know that free trials drive customer conversions, but those only occur when leads are already at the end of their buying journey. 

See you need to identify and prioritize the contacts information early in the awareness and consideration stages of their buying journey. And then nurture them through to sales purchase. Here, gated content downloads, webinar registrations, and product trials are the middle of the funnel KPI for your brand.

Most of the companies come to Matrix Marketing Group for the top of the funnel and middle of the funnel structural issues. What I mean by that is they have not identified the metrics across their buyer’s journey.

Your top-of-the-funnel metrics include website visits, marketing-captured leads, social media reach, and subscribers, which are the most important metrics.

Here’s Some Top of the Funnel KPI’s

Your leads metrics gauge volume, quality, and source. You must assess the quality of the leads entering your marketing funnel, and ensure that the total amount is significant to achieve sales goals.

For example, if your sales goal is 20 new customers in a month and you have an average lead to sales conversion rate up 10%, then you would need 200 marketing qualified leads to reach your sales goal. 

You must develop a revenue architecture that can define criteria that differentiates a lead from a new contact. Such as general inquiries and spam form submissions, from your marketing scorecard. If you don’t do this, your data will be skewed. I suggest marketing software solutions that can streamline lead filtering by automating the process with rules and workflows.

Map out your buyer’s journey to your sales funnel parameters. Make sure that the terminology you use in your organization is understood by everybody and what the process is for the marketing funnel so it aligns with the sales pipeline funnel.

Think about terms like marketing captured leads, marketing qualified leads, and sales accepted leads, sales qualified leads and customers.

marketing plan template

 Here are some standard lead metrics:

  • Content downloads sorted by content and title type
  • Cost per lead
  • Webinar
  • Lead sources
  • Lead quality score
  • Marketing qualified lead to sales accepted lead rate
  • MQL’s
  • SAL’s
  • SQL’s

How to Establish KPIs and Your Marketing Goals

Once you’ve gathered all your historical data and you define benchmarks and goals, you can develop some future sales and marketing goals. My recommendation is not to go set values for every marketing metric, instead focus on primary objectives that will help you reach your business goals the quickest. 

Assign monthly, quarterly, and annual marketing goals. Every marketing campaign should have a primary goal value associated with it. I always say if you can’t measure it, don’t do it.

A marketing assessment is very important at this stage. Your goal should be realistic and achievable based on your company’s talent, technology, budgets, and resources.

Here is an approach to help define your goals and your data will be sued in the marketing funnel calculator:

  • Calculate the average monthly percentage growth over the past six months, and use that trajectory to set monthly metric goals moving forward. Evaluate each KPI individually to account for the strengths and weaknesses of your current marketing program and re-evaluate goals quarterly based on performance.
  •  Or you can use sales revenue targets and work backward to the sales qualified leads, marketing qualified leads, and visitors necessary to achieve business goals. This approach requires closed-loop tracking capabilities and transparency across all functions of the marketing and sales process. So be sure your marketing and sales teams are aligned.

What is a Conversion Funnel?

The diagrams below show a marketing funnel calculator and demand waterfall. Use this marketing funnel calculator to improve your processes.

“Conversion funnel” (also known as “sales funnel”) is a term that helps you to visualize and understand the flow through which a potential customer lands on your site and then takes a desired action (i.e., converts). This process is often described as a funnel because, as a marketer, you are guiding the customer toward your conversion point.

Of the 1005 opportunities that entered this company’s pipeline at the top of the funnel, 206 were closed-won as deals. That provides a sales manager with his team’s overall win rate ? which is excellent information to know ? but what is interesting to him is what happened between those two funnel stages.

demand Waterfall

Look at the second stage demo. Of the 1005 opportunities created and worked on by the sales reps, only 704 (70%) made it to this second stage. From there, 45%, or 314 opportunities, made it to the third stage (Technical Fit). Of those 314 opportunities, only 190 (79%) made it to the Closing stage.

Benchmarks for the Demand Waterfall and Marketing Funnel 

  • The average conversion rates of e-commerce websites in the US is 2.63%.
  • Example: 100,000 people visit an ecommerce site during January. During that month, 2,000 users purchased something from the site. Thus, the site’s conversion rate is 2,000/100,000 = 2%. What is your conversion rate? You can find this in your Google Analytics account.

Step-by-step Guide on Creating a Marketing Funnel with a Marketing Goal Calculator

Step 1: Complete the data collection below to get started. Your responses will tell you the number of new customers and won deals required to support your revenue goals. 

Step 2: Provide your current conversion rates to calculate your marketing funnel targets.

Step 3: Share the results with your team.

  1. What are your web visits to the lead conversion rate?
  2. What percentage of your leads become marketing qualified leads (MQL)?
  3. What is your MQL to sales accepted leads (SAL) conversion rate?
  4. What is your SAL to sales accepted leads (SQL) conversion rate?
  5. What is your SQL to closed-won conversion rate?

Here’s an Example of a Marketing Funnel for an e-commerce Business and a Service-based Business.

The diagrams below show a marketing funnel calculator. Use the marketing funnel calculator to improve your processes.

EXAMPLE 1: Let’s take a look at the e-commerce business first. The sales goal is three million for the year, with 100% of the sales leads driven by marketing. This is a closed-loop revenue model with no sales team.

Marketing Funnel Goal Calculator startup ecommerce

From the illustration below, you will see that we have added all of our pipeline conversion ratios. And from there, it’s just simple math.

In this example, we have a sales goal of $3,000,000, with marketing driving 100% of the sales. There is no sales team. 

Marketing Funnel Goal Calculator startup

EXAMPLE 2: Now, we turn to the service business with a sales goal of $20,000,000. The sales goal is twenty million for the year, with 50% of the sales leads driven by marketing. This company has a small sales team made up of 2 sales development representatives (SDRs) and three direct salespeople.

Marketing Funnel Goal Calculator service
Marketing Funnel Calculator

The average deal size is $150,000 and will require 133 deals to be closed in a 12-month cycle. This service-based business will need to generate about 62,000 web visitors with a 3 percent visit-to-lead ratio. The marketing return on the investment is 733 percent.

Marketing Funnel Calculator Wrap Up 

Most of our clients come to us for one reason, and they want to grow their business. To expand your business, you need to have sales leads. Don’t get me wrong; there’s a lot of ways to generate sales leads. But with digital marketing, where most of the opportunity exists, you must understand your numbers for your marketing funnel. The marketing funnel calculator helps as well.

Most businesses fail because they don’t know their numbers. Like how they’re going to fill out their sales pipeline. How does the buyer engage with our company, and how do they purchase goods that we sell.

For the marketing and sales teams, the demand waterfall probably is the most critical element, two planning a marketing funnel that is aligned with the sales pipeline.

Use the marketing funnel template included in this post.

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Updated January 2021.

General FAQ’s

What is the marketing funnel?

A marketing funnel illustrates your customer’s journey with your brand. From the initial stages when someone learns about your business, marketing funnels map routes to conversions and beyond to the purchasing stage.

What are the sales funnel?

The sales funnel (also known as a revenue funnel or sales process) refers to the buying process that companies lead customers through when purchasing products. The typical sales funnel is divided into multiple steps, which differ depending on the particular sales model.

How do you calculate funnel conversion?

The conversion rate is the number of conversions divided by the number of visitors. To see what percentage of visitors converted, you divide converting visitors by total visitors and multiply by 100%. We typically call this your “click conversion rate. “

What is the marketing funnel calculator?

With a marketing funnel calculator, you can perform a simple what-if analysis to determine if you need to increase your lead volume, close rate, or average order size. With this valuable information, you can decide where to focus your optimization efforts.

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