Quote conversion rate is the percentage of eligible quotations that become confirmed orders or won deals during a defined period. The usual formula is converted quotations divided by eligible quotations, multiplied by 100. The result is only comparable when the team uses consistent statuses, dates and exclusions.
Quote conversion rate formula
Quote conversion rate = converted quotations ÷ eligible quotations × 100
The calculation is simple. Defining the numerator, denominator and observation window is the real work.
| Choice | Example rule | Why it matters |
|---|---|---|
| Denominator | Sent quotations, excluding tests and duplicates | Drafts should not depress the rate |
| Conversion event | Accepted quote or confirmed order | Teams may otherwise count different milestones |
| Date basis | Cohort by quotation issue month | Prevents old wins from inflating a new period |
| Open quotes | Report separately until won, lost or expired | Recent cohorts need time to mature |
A monthly ratio mixes cohorts
Dividing one month's orders by that same month's quotations mixes different cohorts. A quotation issued earlier may convert much later. For a clean cohort measure, start with quotations issued in one period and observe their final outcomes after a suitable window.
Read the rate with its drivers
- Conversion by customer segment, salesperson or product family
- Average time from issue to acceptance
- Loss reasons such as price, timing, specification or no decision
- Discount and margin on won versus lost quotes
- Expired and withdrawn quotations
- Value-weighted conversion as well as quote count
Count and value tell different stories
A team can win many small quotations while losing the largest opportunities. Count-based conversion measures documents or deals. Value-based conversion divides the quoted value won by the eligible quoted value. Report both when deal sizes vary, and label them. One measures the share of opportunities won; the other measures the share of quoted value won.
The quote conversion calculator handles the arithmetic. Reliable reporting still depends on traceable issue, acceptance and revision events, which can be kept with the quotation in Quotable quote software.
