Compare percentage points, not percentage growth. Values above 100 points are unattainable.
Try this with your own numbersFormula and worked example
Required close-rate improvement = cost / (leads × contribution) × 100
| Input | Example |
|---|---|
| Monthly improvement cost | 1,000 |
| Monthly qualified leads | 200 |
| Contribution per extra sale | 250 |
| Calculated result | 2 percentage points |
Choose reliable inputs
Connect teaching time, preparation, attendance and room capacity to each lesson or class. For this language school calculation, use attendance records, teaching schedules and room costs and a consistent definition of one lesson.
- Instruction: include the portion belonging to this lesson or reporting period, and record where the value came from.
- Materials: include the portion belonging to this lesson or reporting period, and record where the value came from.
- Student administration: include the portion belonging to this lesson or reporting period, and record where the value came from.
Use the same currency for every money input. Do not mix weekly costs with monthly revenue, or count the same expense in both an itemised cost and allocated overhead.
How much must conversion improve to fund follow-up?
Compare percentage points, not percentage growth. Values above 100 points are unattainable.
What if this input changes?
If monthly improvement cost rises by 10%, this example changes by 0.2 percentage points. This shows the effect of one change; it does not predict what will happen.
Open the calculator, save your baseline, then change the input supported by the least reliable estimate in your records. Compare both scenarios before committing to a price or capacity promise.