If you're not familiar with the conversion stages of a prospect used in this calculator, see the B.A.N.T. Chart for an explanation of this system for defining and ranking the types of prospects and stages in a prospects lifecycle.

This tool will calculate the number of inquiries, leads, opportunities, qualified opportunities, and closed sales needed to achieve the projected response rate that you enter.  Once you have entered the response rate, you can use the "Response Rate Adjustment" slider bar at the bottom to fine tune the response rate to determine actual breakeven based on the advertising circulation and costs for the program, the average revenue per transaction, and the gross margin percentage for that transaction that you enter.  Breakeven is achieved when the gross profit percentage equals zero.

The total cost for the fulfillment piece includes all of the product, creative, production, mailing costs, etc. involved in getting the package to the respondent as well as any follow up marketing cost such as outbound teleservices to verify receipt of the kit or answer respondent questions.  It is entered on a per piece basis (e.g., $14.50 for the fulfillment kit delivered).

If you don't distinguish between inquiries and leads, you may enter a 100% conversion rate into the "conversion rate from "inquiries" to "leads" cell. The calculator will generate the same number of inquiries and leads required to achieve breakeven.

If you don't distinguish between opportunities and qualified opportunities, you may enter a 100% conversion rate into the "conversion rate from "opportunities" to "qualified opportunities" cell. The calculator will generate the same number of opportunities and qualified opportunities required to achieve breakeven.

Enter your response rate in the projected response rate cell. You can conduct "what-if" analysis by varying your response rate until you obtain breakeven or your desired profit % goal. Once you've determined breakeven or greater, you will need to make the decision of whether or not you think based on your history or industry parameters whether or not the response rate is achievable. For example, if the breakeven requires a 5% response rate and based on similar programs run by other marketers, the best that has been achieved for this type of promotion is 2%, you know that your program is not achievable based on your campaign costs, conversion rates and selling price and margins.