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Part 1, chapter 2 · Outbound Fundamentals · 2026-08-03

How Much Does an SDR Cost? $134K a Year, Itemised

Published estimates of a fully loaded SDR run from $134,000 to $154,000. The spread is a disagreement about which costs count.

Four published estimates of a fully loaded US SDR: $134,000, $142,500, $154,000, and one source giving a range of $102,000 to $210,000. The middle three sit inside a 15% band on what should be simple addition; the fourth is twice as wide as the other three combined.

The temptation is to average them. Do not. Every one of these figures is published by a company selling an alternative to hiring, which means the errors do not cancel out, they all lean the same way.

Do not average them. The spread is not measurement error, it is a disagreement about which costs belong in the total, and the disputed line items are the interesting part.

The itemisation

The most detailed published breakdown looks like this. The first two rows are uncontroversial. Everything below them is where the estimates diverge.

Line itemAnnualDisputed?
On-target earnings$65,000No
Benefits and payroll taxes$16,250No
Tools and software$9,000Sometimes
Management overhead$18,000Often
Annualised ramp cost$20,250Usually excluded
Annualised turnover cost$14,000Usually excluded
Total$142,500

Base pay and benefits are 57% of the total. The other 43% is the part people argue about, and the two largest disputed items — ramp and turnover — are the ones a first-time buyer never thinks to include.

Why ramp and turnover are real costs, not accounting theatre

The instinct is to treat ramp cost as fictional. You are paying the salary anyway; calling the first four months a separate expense feels like double-counting.

It is not, and the reason is tenure. Median ramp to 80% of quota is 3.9 months. Median tenure is 17.6 months. So 22% of the average rep's entire time at your company is spent producing partial output, and because they leave after roughly a year and a half, you pay that 22% again on the replacement, and again on the one after that.

This is the structural fact about the role. It is not that SDRs are expensive. Plenty of roles cost more. It is that the ramp period is long relative to the tenure, so a permanent fraction of what you spend buys partial output. Annual turnover in the function runs 34–40%, which means a five-person team is replacing roughly two people a year, every year.

The number that actually matters

Annual cost is the wrong unit. What you are buying is held meetings, so price those.

Take the median 14.6 booked meetings a month, apply the 20% no-show rate, and you get about 11.7 held. Over a year that is roughly 140 held meetings. Against the mid-range cost estimate:

Cost estimateHeld meetings / yrCost per held meeting
$134,000140$957
$142,500140$1,018
$154,000140$1,100

Published figures for in-house cost per held meeting run $821 to $1,150, which brackets our arithmetic and suggests the model is roughly right.

Why this number gets misquoted in every AI comparison

Vendors selling AI SDR software routinely compare their cost per meeting against a human figure around $500. That number is not wrong exactly, it is what you get if you divide base salary alone by booked rather than held meetings, and exclude ramp, turnover, management and tooling.

In other words the comparison uses the narrowest possible human cost against the broadest possible software output. The honest comparison is roughly $960 to $1,100 per held meeting for a human, and you should demand the software's figure be computed the same way — held, not booked, with the data and infrastructure costs included.

That is a genuinely favourable comparison for the software in many cases. It just is not the one being advertised, and a buyer who accepts the advertised version has no way to check it.

Questions

How much does an SDR cost per year?
Published fully loaded estimates run $134,000 to $154,000, with one source quoting $102,000 to $210,000. The spread comes from whether ramp, turnover and management overhead are counted — base salary and benefits are only about 57% of the total.
Can you make $100k as an SDR?
In top-paying US tech markets, yes, with accelerators on an over-quota year. The median is closer to $65,000 OTE. Note that this is the number the employee sees; the employer's fully loaded figure is roughly double it.
Are SDRs worth it?
Above roughly a $5,000 average deal, usually. Below it the arithmetic stops working: each held meeting has to carry about $930 of expected value just to cover the prospecting function, before the closer or anything else.
What is a fully loaded cost?
Salary plus everything else needed to keep the person productive: payroll taxes, benefits, software, the manager's time, the ramp period before they hit quota, and the cost of replacing them when they leave.
What does a booked meeting actually cost?
Around $960 to $1,100 per held meeting in-house, computed from median output of ~140 held meetings a year. Published third-party figures put the range at $821 to $1,150.
Why do AI SDR vendors quote around $500 per meeting for a human?
Because that is what you get using base salary alone, divided by booked rather than held meetings, with ramp, turnover, management and tooling excluded. Ask for the software's figure computed on the same basis as the human one.
Is outsourcing cheaper than hiring?
Sometimes, and note that every published comparison of the two is authored by one side or the other. The structural advantage of outsourcing is that you do not pay the ramp cost twice when someone leaves; the structural disadvantage is that the vendor's reps sell for several companies.
Does the cost change outside the US?
Substantially. These figures are US-based. The ramp and turnover structure holds across markets even where salaries do not, because it is a property of the job rather than the labour market.

Tools mentioned

Sources

Source interests are labelled. Almost everything published about this subject is written by someone selling into it.

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