ThinkWork
Leader Calculator/Tool Free

Sales Forecast Accuracy Calculator

Enter last quarter's forecast vs. actuals to get your forecast-accuracy percentage plus which direction the bias is running — over-forecasting (happy ears) or under-forecasting (sandbagging).

What's inside

  • Forecast Accuracy % formula: 100% − (|Actual − Forecast| ÷ Forecast × 100)
  • Bias-direction formula distinguishing over-forecasting from under-forecasting
  • Fully worked example calculation ($1M forecast vs $760K actual = 76%, 24% over-forecast)
  • Fill-in worksheet for your own numbers
  • Per-rep table so team rollups don't hide individual bias
  • Score-reading bands: 90-100% Excellent through Below 70% Systemic
  • Diagnostic guide for what consistent over- vs under-forecasting each imply about your process
  • Quarter-over-quarter tracking table to separate a one-off miss from a pattern

The formula

`` Forecast Accuracy % = 100% − ( |Actual − Forecast| ÷ Forecast × 100 ) ``

Bias Direction: `` If Actual < Forecast → Over-forecasting (optimism / "happy ears" bias) If Actual > Forecast → Under-forecasting (sandbagging bias) If Actual = Forecast → No directional bias ``

Bias Magnitude % = (Actual − Forecast) ÷ Forecast × 100 — negative = over-forecast, positive = under-forecast (sandbag).

Worksheet — fill in your numbers

FieldYour Number
Forecast committed at start of quarter ($)___________
Actual closed-won at end of quarter ($)___________
Variance ($) = Actual − Forecast___________
Variance (%) = Variance ÷ Forecast × 100___________
Forecast Accuracy % (formula above)___________
Bias direction (over-forecast / under-forecast / none)___________

Worked example

  • Forecast: $1,000,000
  • Actual: $760,000
  • Variance: −$240,000 (−24%)
  • Forecast Accuracy % = 100 − (240,000/1,000,000×100) = 76%
  • Bias direction: Over-forecasting by 24% (optimism bias / happy ears)

Do this per rep, then roll up

Repeat the worksheet for every rep, then for the team total. A team accuracy score can look fine while masking two reps who wildly over-forecast and two who sandbag — the rollup hides it. Always calculate per-rep before you calculate for the team.

RepForecastActualAccuracy %Bias
Team Total

Reading the score

  • 90–100%: Excellent. Forecast is a reliable planning input.
  • 80–89%: Good. Minor noise, not a systemic issue — spot-check the worst-variance rep.
  • 70–79%: Caution. Something in the qualification or deal-review process is letting unverified deals into the number (see the companion Deal Review Checklist).
  • Below 70%: Systemic. The forecasting process itself — not any one rep — needs to change. Look for a pattern: is it concentrated in one segment, one rep, one stage?

Reading the direction (this matters more than the score)

  • Consistent over-forecasting (Actual < Forecast, repeatedly): Deals are being called Commit/Best Case without verified economic-buyer access or a compelling event. Fix at the deal-review layer, not the number.
  • Consistent under-forecasting (Actual > Forecast, repeatedly): Reps are sandbagging — holding deals out of the forecast to guarantee they "beat the number." This inflates confidence in the wrong direction and causes leadership to under-resource. Fix by rewarding forecast accuracy, not just overachievement.
  • Bias flips quarter to quarter with no pattern: Deal timing/close-date discipline is the issue, not confidence calibration.

Track it over time

QuarterForecastActualAccuracy %Bias Direction
Q1
Q2
Q3
Q4

A single quarter tells you the score. Four quarters tell you whether it's a person problem or a process problem.

How to use it

Drop last quarter's committed forecast and actual closed-won into the worksheet at the start of every QBR to get your accuracy score and bias direction, then track it quarter over quarter to see if the bias is a person issue or a process issue.

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