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SDR cost calculator: in-house vs. outsourced.

What does one more sales development rep really cost — and what does each meeting cost once you count hiring, ramp, turnover, benefits, tools and management? Enter your numbers, or start from 2025–2026 industry benchmarks.

Updated November 3, 2026 · By Kensington Sales Group · 6-minute read

Key takeaways

  • The median SDR earns a $55,000 base and $80,000 at target, but the fully loaded cost is far higher once benefits, a manager's time, recruiting and tools are added.
  • A new SDR typically takes about 1.5 months to hire and 3 months to ramp, so the first year delivers well under 12 months of output.
  • With 1.9-year average tenure, you re-hire and re-ramp about every two years — a cost most budgets leave out.
  • Compare options on cost per meeting, not salary versus fee.

Calculate your SDR cost

Defaults come from The Bridge Group's 2025 SDR benchmark, BLS compensation data and SHRM's recruiting benchmarks. Change any number to match your team.

1. Pay
$
Bridge Group 2025 median: $55,000
$
Commission/bonus. Median OTE is $80,000
% of pay
BLS: about 33% on top of wages for sales workers
2. Hiring, ramp and turnover
months
SHRM: about 45 days median
months
Bridge Group 2025: 3.0 months
months
Bridge Group 2025: 1.9 years
$
SHRM internal median; agency fees cost more
3. Management and tools
$
Bridge Group 2025 median
Bridge Group 2025 average
$
Data, dialer, sequencing and CRM seats
4. Output
Bridge Group 2025 median quota (held)
5. Optional: compare an outsourced quote
$
All-in monthly price for the team
What the provider expects to deliver
months
Onboarding and list building

In-house SDRs

First 12 months—
Each year after—
Cost per meeting—

Add an outsourced quote above to compare cost per meeting on the same basis.

Get a KSG quote

Estimates only. The model assumes output is half of full speed during ramp, and that each departure brings a vacancy and a new ramp. It doesn't include severance, office space or the account executive time spent training new reps.

The hidden costs of an in-house SDR

  • Benefits and payroll taxes. For private-industry sales workers, benefits make up 24.7% of total compensation, according to the Bureau of Labor Statistics — about a third on top of wages.
  • The empty seat. SHRM's 2025 benchmark puts the median time to fill a non-executive role at about 45 days. No meetings are booked while the seat is open.
  • Ramp. The Bridge Group's 2025 research finds SDRs take 3.0 months to reach full productivity.
  • Turnover. Average SDR tenure is 1.9 years, and median annual attrition was 40% in 2024 — including promotions out of the role. Each exit restarts hiring and ramp.
  • Management. First-line SDR managers oversee about 6.4 reps and earn a median $146,000 at target, so every rep carries a share of that cost.
  • Quota attainment. Only 60% of SDRs hit quota in the 2025 benchmark — the lowest share in the study's history.

How the math works

  1. First 12 months: the seat is empty while you hire, then the rep ramps at half speed, then produces at full speed. You pay recruiting, salary and benefits from the start date, tools and a share of the manager.
  2. Each year after: average tenure sets how often the seat turns over. Each turnover adds a recruiting cost, a vacancy and another ramp.
  3. Cost per meeting: total annual cost divided by meetings delivered. This is the number to compare with an outsourced quote, a marketing program or an events budget.

In-house vs. outsourced SDRs

An in-house team makes sense when you have steady, long-term demand, a manager with time to coach and a playbook that already works. An outsourced team makes sense when you need pipeline faster than you can hire, want to test a new market, or don't want to rebuild after every departure.

For public-sector and utility markets there's one more factor: knowledge. A new hire has to learn how agencies budget, who signs and when they buy before they can hold a credible conversation. KSG's embedded SDR teams start with that knowledge and have booked more than 10,000 qualified meetings for clients since 2016. See how buyers differ in our market guides, or size your market with the B2G market size calculator.

Sources

FAQ

Frequently asked questions

How much does an SDR cost per year?
More than the salary. The Bridge Group's 2025 benchmark puts the median SDR at a $55,000 base and $80,000 on-target earnings. Add benefits and payroll taxes (benefits are 24.7% of total compensation for private-industry sales workers, per BLS), a share of a manager's pay (about 6.4 SDRs per manager), tools, and recruiting, and the default inputs in this calculator come to roughly $130,000 a year per SDR seat.
How long does it take an SDR to ramp?
The Bridge Group's 2025 research puts average SDR ramp time at 3.0 months. Add the time it takes to fill the seat — SHRM puts the median at about 45 days for non-executive roles — and a new hire typically spends four to five months before producing at full speed.
How long do SDRs stay?
The Bridge Group's 2025 report puts average SDR tenure at 1.9 years, with median annual attrition of 40% in 2024 (including promotions out of the role). Every departure restarts recruiting, vacancy and ramp, which is why turnover is one of the biggest hidden costs.
How many meetings should an SDR book per month?
The median quota in The Bridge Group's 2025 report is 10 meetings held per month, and 60% of SDRs hit quota — the lowest share in the study's history. Use your own team's actual numbers if you have them.
What is a good cost per meeting?
It depends on your deal size and win rate. A useful check: divide your average first-year contract value by the number of meetings it takes to win one deal. If your cost per meeting is well below that, the program pays for itself.
Is outsourcing SDRs cheaper than hiring?
Often, once you count everything: recruiting, vacancy, ramp, turnover, benefits, tools and manager time. Enter a provider's quote in the comparison section to see both on the same basis. Outsourcing also lets you start in weeks rather than months and scale up or down without hiring or layoffs.
Can KSG give us a quote?
Yes. Book a 30-minute call and we'll price a public-sector SDR program for your market, then you can enter it here to compare. Book a call.

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