Every quota planning season ends the same way: RevOps presents a bottoms-up capacity model, Finance presents a top-down revenue target, and the two numbers do not match. The quota-to-revenue bridge is how you close that gap without resorting to spreadsheet fiction. Done right, it becomes the single document that aligns Sales, Finance, and the executive team.
The Bridge Framework¶
A quota-to-revenue bridge walks from total assigned quota down to expected revenue in clear, auditable steps:
| Line Item | Amount | Notes |
|---|---|---|
| Total Assigned Quota | $24.0M | Sum of all rep quotas |
| Less: Ramp Adjustment | ($1.8M) | New hires carrying partial quota |
| Less: Expected Attrition | ($1.2M) | Planned departures mid-year |
| Effective Quota Capacity | $21.0M | What the team can realistically carry |
| x Historical Attainment Rate | 88% | Trailing 4-quarter median |
| Expected Bookings | $18.5M | Quota capacity x attainment |
| Revenue Target | $18.0M | Board-approved plan |
| Buffer / (Gap) | $0.5M | Positive = buffer, Negative = gap |
This format tells the CFO exactly where every dollar comes from and where it leaks out.
Calculating the Right Coverage Ratio¶
The coverage ratio is total assigned quota divided by revenue target. Use this formula:
Coverage Ratio = 1 / (Attainment Rate x (1 - Attrition Impact) x (1 - Ramp Discount))
For example, with 88% attainment, 5% attrition impact, and 8% ramp discount:
Coverage = 1 / (0.88 x 0.95 x 0.92) = 1 / 0.769 = 1.30x
This means you need $1.30 in assigned quota for every $1.00 of revenue target. If your target is $18M, you need $23.4M in total quota.
A coverage ratio below 1.10x is dangerously thin - one bad quarter or unexpected departure puts the plan at risk. Above 1.40x signals quotas are inflated, which kills morale.
Running the Gap Analysis¶
After building the bridge, compare effective quota capacity to the revenue target. Three scenarios:
Scenario A - Buffer exists (capacity exceeds target by 3-8%). This is the healthy zone. You have room for a few misses without blowing the plan. No action needed.
Scenario B - Tight (capacity within 0-3% of target). Risky. One attrition event or one territory underperforming puts you behind. Consider accelerating a hire or increasing coverage in high-confidence segments.
Scenario C - Gap (capacity below target). You need to close the gap through one or more levers:
- Add headcount - Fastest if you can hire and ramp in time
- Increase territory capacity - Reassign accounts from low-performing territories to reps with bandwidth
- Adjust the target - If the gap is structural, present the data and negotiate a realistic number
Presenting to Finance¶
CFOs trust the bridge when they can trace every assumption. Include a sensitivity table:
| If Attainment Is… | Expected Bookings | vs. Target |
|---|---|---|
| 82% | $17.2M | ($0.8M) gap |
| 85% | $17.9M | ($0.1M) gap |
| 88% | $18.5M | $0.5M buffer |
| 92% | $19.3M | $1.3M buffer |
This shows the range of outcomes and builds credibility. Finance teams do not expect certainty - they expect transparency about risk.
Key Takeaways¶
- Build a line-by-line bridge from total quota to expected revenue, accounting for ramp, attrition, and attainment
- Target a coverage ratio between 1.15x and 1.35x depending on your historical attainment and attrition
- Run gap analysis in three scenarios and have a clear plan for each
- Present sensitivity tables to Finance to demonstrate risk awareness and build trust