The $198,000 Mistake Calculator

What does a failed sales hire actually cost your company? Adjust the inputs below and find out.

The 5 Hidden Cost Segments

The calculator breaks down the true cost of a failed SDR hire into five segments that most founders overlook. A $65-85K salary is just the visible cost. The invisible costs are what kill you.

1. Recruiting Fee

The upfront cost of finding and hiring a sales rep. Whether you use a recruiter (15-25% of first-year salary), job boards, or internal recruiting resources, this cost is real and often underestimated.

2. Ramp Burn

The fully loaded cost of paying a rep during their unproductive ramp period. Most SDRs take 3-6 months to reach full productivity. During this time, you're paying full salary, benefits, and overhead for near-zero output.

3. Founder's Distraction Tax

The opportunity cost of the founder or sales leader spending 10-20 hours per week on training, coaching, call reviews, and pipeline management. This is time not spent on product, fundraising, or strategic partnerships.

4. Pipeline Graveyard

The revenue lost from prospects that were mishandled, poorly qualified, or abandoned during the failed hire's tenure. These burned leads represent real pipeline value that will never be recovered.

5. Separation Cost

When the hire doesn't work out — and with a 34% first-year turnover rate, there's a 1-in-3 chance it won't — you face severance, legal costs, and the entire cycle starts over.

How the Calculator Works

Adjust the inputs to match your company's specifics: base salary, benefits, ramp time, recruiting method, and founder hourly value. The calculator computes the total cost across all five segments and displays a waterfall chart showing how the costs stack up to the $198K+ total.

The default values are calibrated to the median B2B SaaS company. Your actual numbers may be higher or lower — that's exactly why you should run the calculation yourself.

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