What the calculation means
Expected enquiries equal visitors multiplied by enquiry rate. Expected customers equal enquiries multiplied by close rate. Potential revenue equals customers multiplied by average customer revenue. The difference between the two scenarios is multiplied by your gross margin assumption to estimate incremental contribution. The model allows fractional expected customers because it describes an average scenario rather than a list of actual sales.
What it leaves out
The calculation holds visitor numbers and close rate constant. It excludes repeat purchases, tax, seasonality, capacity constraints and any costs not represented in the gross margin assumption. Payback divides project cost by positive incremental monthly contribution. If the difference is zero or negative, the calculator does not show a finite payback period. Replace the sample inputs with actual business data before using it in a decision.
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