Sales capacity
Reps, ramp, quota: the new ARR a team can close.
By Surojit Chakraverti, founder of L3VLUP and an investor running a long-short healthcare and technology equities strategy.
On this subject: sales capacity.Updated 30 September 2026
Part of technology company financial models, with the models, labs and guides around it.
What it does
Growth as a capacity rather than a rate. Account executives are hired, ramp for a set number of quarters at partial productivity, become productive, and some leave; the productive base times a quarterly quota times attainment, plus the ramping contribution, is the new ARR the company can close. Divided by the average contract value it is the new customers, and its cost is the sales team line of the P&L.
Where it lives
The same schedule in each model that carries it, with the rows to open. Open a model in the browser, go to the sheet, and click the lines.
- Assumptions, row 6: Scenario
- Assumptions, rows 15–22: AE hires, Ramp period, Ramping AE productivity, % of full quota, Quota per productive AE, annual…
- Sales Capacity, rows 6–12: Hires, Ramping, Productive, opening, Graduating to productive…
- Sales Capacity, rows 15–19: Productive AE capacity, Ramping AE capacity, New ARR closed, New customers…
What a reviewer looks for
- New hires productive on day one.
- Attainment of one hundred percent.
- No attrition, so the team only ever grows.
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