Sales forecast accuracy measures how closely predicted revenue matches actual results. Calculated using MAPE (Mean Absolute Percentage Error), it shows the average percentage deviation between forecasts and actuals. Top-performing organizations achieve 85-95% accuracy, enabling better resource allocation, hiring decisions, and investor confidence. This tool calculates your MAPE, identifies forecasting bias, and benchmarks against industry standards.
Track forecast vs. actual performance, calculate MAPE, and identify bias patterns to improve your sales forecasting.
| Period | Forecast ($) | Actual ($) | Variance | |
|---|---|---|---|---|
| +4.2% | ||||
| -7.7% | ||||
| +2.9% | ||||
| +6.7% |
Your forecasting is at or above industry benchmarks. Maintain current practices and consider fine-tuning for even greater precision.
Source: CSO Insights, Gartner Research. Based on analysis of 500+ B2B sales organizations.
MAPE measures the average absolute percentage difference between forecasted and actual values. A MAPE of 15% means forecasts are off by 15% on average. Lower MAPE indicates better forecast accuracy.
Industry benchmarks suggest 80-90% accuracy is "good" and 90%+ is "excellent." Top-performing sales organizations achieve 85-95% forecast accuracy. Accuracy below 70% typically indicates systemic forecasting issues.
Positive bias (over-forecasting) often stems from optimistic rep behavior or sandbagging quotas. Negative bias (under-forecasting) may indicate conservative estimates or unexpected deal closures. Consistent bias in either direction suggests process improvements are needed.
Best practice is to measure monthly or quarterly, comparing forecasts made at consistent time horizons (e.g., 30-day forecast vs. actual). Track trends over 6-12 months to identify patterns and measure improvement initiatives.
Key strategies include: (1) Use weighted pipeline based on stage probability, (2) Implement deal scoring, (3) Review historical accuracy by rep and stage, (4) Shorten forecast horizons, (5) Use AI-assisted forecasting tools, (6) Regular pipeline reviews with coaching.
This calculator uses MAPE methodology, the industry standard for measuring forecast accuracy in sales organizations. Based on data from Gartner, Forrester, and industry benchmarks.
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