RRE (Ramped Rep Equivalent)
Definition
Ramped Rep Equivalent (RRE) is a capacity metric that converts partially ramped sales representatives into fully ramped equivalents based on their productivity levels. It provides a standardized way to measure total sales capacity that accounts for ramp time.
Why It Matters
- Headcount alone doesn't reflect actual selling capacity
- New hires produce at lower levels during onboarding
- RRE enables accurate capacity planning and quota setting
- Allows apples-to-apples comparison across time periods
Formula
Basic Formula
RRE = Σ (Headcount × Ramp %)
Where:
- Headcount: Number of reps in each ramp cohort
- Ramp %: Productivity level relative to fully ramped (0% to 100%)
Example Calculation
Given this team composition:
| Tenure | Headcount | Ramp % | Calculation |
|---|---|---|---|
| 0-3 months | 5 | 25% | 5 × 0.25 = 1.25 |
| 3-6 months | 3 | 60% | 3 × 0.60 = 1.80 |
| 6-9 months | 2 | 85% | 2 × 0.85 = 1.70 |
| 9+ months (fully ramped) | 15 | 100% | 15 × 1.00 = 15.00 |
| Total | 25 | - | 19.75 RRE |
This team of 25 people has the equivalent capacity of 19.75 fully ramped reps.
Common Variants
Time-Based RRE
Uses calendar months or quarters as ramp cohorts (shown above).
Attainment-Based RRE
Uses actual attainment % instead of assumed ramp curve:
RRE = Σ (Headcount × Actual Attainment %)
Weighted RRE
Different ramp curves by role (SDR vs AE vs Enterprise AE).
Best Practices
- Document Your Ramp Curve: Your assumed ramp percentages by tenure
- Update Regularly: Recalculate RRE monthly as team composition changes
- Benchmark Actuals: Compare assumed vs actual productivity to validate your curve
- Be Consistent: Use the same methodology across time periods for valid comparisons
Common Pitfalls
- Using headcount when you mean RRE (overstates capacity)
- Applying a single ramp curve to all roles
- Not updating ramp assumptions as onboarding improves
- Ignoring seasonality in ramp performance
Related Terms
References
- Standard metric used across SaaS sales operations
- Related to "productive headcount" and "effective capacity"