Forecast Accuracy
Forecast Accuracy is The measurement of how closely a revenue forecast predicts actual results, typically expressed as the percentage deviation between forecasted and actual revenue.
Forecast accuracy is RevOps' credibility metric. When the forecast says $2M and the quarter closes at $1.5M, leadership loses trust in the numbers — and by extension, in the ops function. Accurate forecasting is the difference between a RevOps team that has a seat at the strategy table and one that's viewed as a reporting function.
How to Measure It
Forecast Accuracy = 1 - |Forecast - Actual| / Actual × 100
Benchmarks
- Excellent: Within 5% of actual
- Good: Within 10%
- Acceptable: Within 15%
- Needs work: Off by more than 20%
Common Failure Modes
- Sandbagging: Reps lowball commits to look like heroes. Fix with accountability and historical accuracy tracking by rep.
- Happy ears: Reps include deals that aren't real. Fix with stage validation rules and mandatory next steps.
- Single-point forecast: Only tracking "commit." Add best case, most likely, and worst case ranges.
Tools like Clari and Gong use AI to layer engagement signals on top of rep forecasts. For the full KPI framework, see RevOps KPIs.
Frequently Asked Questions
Who owns forecast accuracy?
RevOps owns the methodology and measurement. Sales leadership owns the inputs (deal updates, commit calls). Both share accountability for accuracy.
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