The True Cost of Hiring an SDR in India (2025 Updated Model)
"How much does an SDR cost?"
Google that question and you'll get answers like:
- "₹25,000-35,000 per month"
- "₹3-4 lakh per year"
- "Depends on experience"
These numbers are dangerously misleading.
After hiring, training, and managing 70+ SDRs across India, we've tracked every rupee spent. The real cost? 3-4X what most founders budget.
This article breaks down the complete cost model for hiring SDRs in India in 2025—including all the hidden expenses that blindside founders 6 months in.
The Fantasy vs Reality
What Founders Think:
"I'll hire 3 SDRs at ₹30k each. That's ₹90k/month or ₹10.8L/year. Done."
What Actually Happens:
- Month 1-2: Hiring process costs ₹50k in job ads, recruiter time, interview coordination
- Month 3: Two SDRs quit, one underperforms
- Month 4-5: Hiring again + training costs
- Month 6: Realize you've spent ₹15L with minimal output
- Month 7-12: The cycle continues
Final Year 1 Cost: ₹25-30L for what you thought would be ₹10.8L.
Let's break down exactly where the money goes.
The Complete Cost Breakdown: 1 SDR for 1 Year
Category 1: Direct Compensation
| Item | Monthly | Annual | Notes |
|---|---|---|---|
| Base Salary | ₹30,000 | ₹3,60,000 | Junior SDR in metro city |
| Provident Fund (12%) | ₹3,600 | ₹43,200 | Mandatory employer contribution |
| ESI (3.25%) | ₹975 | ₹11,700 | For employees earning <₹21k (first few months) |
| Gratuity Provision (4.81%) | ₹1,443 | ₹17,316 | Accrued liability |
| Performance Bonus | ₹5,000 | ₹60,000 | Assuming 50% achieve quarterly targets |
| Annual Increment | - | ₹18,000 | 5% raise after 12 months (prorated) |
| SUBTOTAL | ₹41,018 | ₹5,10,216 |
Category 2: Tools & Technology
| Item | Monthly | Annual | Notes |
|---|---|---|---|
| CRM License | ₹4,000 | ₹48,000 | HubSpot/Salesforce per seat |
| Sales Intelligence | ₹8,000 | ₹96,000 | Apollo.io/ZoomInfo for data |
| Dialer Software | ₹3,000 | ₹36,000 | JustCall/Exotel with calling credits |
| Email Automation | ₹2,500 | ₹30,000 | Smartlead/Instantly/Lemlist |
| LinkedIn Sales Navigator | ₹3,000 | ₹36,000 | Essential for B2B prospecting |
| Phone Credits | ₹2,000 | ₹24,000 | Actual calling costs |
| Slack/Communication Tools | ₹500 | ₹6,000 | Team coordination |
| SUBTOTAL | ₹23,000 | ₹2,76,000 |
Category 3: Infrastructure & Equipment
| Item | Monthly | Annual | Notes |
|---|---|---|---|
| Laptop | ₹4,167 | ₹50,000 | ₹50k laptop amortized over 1 year |
| Headset & Accessories | ₹417 | ₹5,000 | Quality headset essential |
| Office Seat | ₹5,000 | ₹60,000 | Coworking or office space |
| Internet Backup | ₹1,000 | ₹12,000 | Mobile hotspot for reliability |
| Ergonomic Setup | ₹833 | ₹10,000 | Chair, monitor, keyboard |
| SUBTOTAL | ₹11,417 | ₹1,37,000 |
Category 4: Training & Onboarding
| Item | Monthly | Annual | Notes |
|---|---|---|---|
| Onboarding Program | - | ₹15,000 | First month intensive training |
| Sales Courses | ₹2,000 | ₹24,000 | Udemy, LinkedIn Learning, etc. |
| Sales Books & Resources | ₹500 | ₹6,000 | Continuous learning materials |
| Coaching Software | ₹1,500 | ₹18,000 | Gong/Chorus for call reviews |
| Trainer/Manager Time | ₹8,000 | ₹96,000 | 20% of manager's bandwidth |
| SUBTOTAL | ₹12,000 | ₹1,59,000 |
Category 5: Management & Operations
| Item | Monthly | Annual | Notes |
|---|---|---|---|
| Manager Time (Direct) | ₹15,000 | ₹1,80,000 | Daily oversight, reviews, coaching |
| Recruitment Costs | ₹4,167 | ₹50,000 | Amortized (one replacement per year) |
| HR & Payroll Admin | ₹1,000 | ₹12,000 | Processing, compliance, benefits |
| Team Events & Culture | ₹1,500 | ₹18,000 | Quarterly team building, celebrations |
| Performance Management Tools | ₹1,000 | ₹12,000 | OKR software, dashboards |
| SUBTOTAL | ₹22,667 | ₹2,72,000 |
Category 6: Hidden Costs (The Killers)
| Item | Monthly | Annual | Notes |
|---|---|---|---|
| Ramp Time Opportunity Cost | ₹10,000 | ₹30,000 | 3 months at low productivity |
| Founder/CXO Time | ₹12,000 | ₹1,44,000 | 10% bandwidth on SDR issues |
| Attrition Buffer | ₹5,000 | ₹60,000 | Planning for inevitable turnover |
| Bad Leads & Brand Damage | ₹3,000 | ₹36,000 | Cost of poor quality outreach |
| Context Switching | ₹2,000 | ₹24,000 | Team distraction from hiring/turnover |
| SUBTOTAL | ₹32,000 | ₹2,94,000 |
TOTAL ANNUAL COST PER SDR: ₹14,48,216
Yes, you read that right. ₹14.5 lakh per SDR per year.
And that's assuming:
- Only one replacement needed (reality: 0.5-0.6 replacements per year)
- No major tool cost increases
- Stable manager availability
- No extended ramp time
Real-World Scenarios: What It Actually Costs
Scenario 1: The "Smooth" Hiring (Best Case)
Timeline:
- Month 1-2: Hire and onboard SDR
- Month 3-4: Ramp period (50% productivity)
- Month 5-12: Full productivity (8 months of output)
Cost:
- Direct costs: ₹14.5L
- Meetings generated: 25/month × 8 months = 200 meetings
- Cost per meeting: ₹7,250
Scenario 2: The "Typical" Hiring (Realistic)
Timeline:
- Month 1-2: Hire SDR #1
- Month 3-4: Ramp period
- Month 5-6: SDR quits
- Month 7-8: Hire SDR #2
- Month 9-10: Ramp period
- Month 11-12: Finally hitting stride
Cost:
- SDR #1: ₹7.25L (6 months)
- SDR #2: ₹7.25L (6 months)
- Extra recruitment: ₹50k
- Productivity loss: ₹1L
- Total: ₹16L
- Meetings generated: ~100 in year 1
- Cost per meeting: ₹16,000
Scenario 3: The "Nightmare" Hiring (More Common Than You Think)
Timeline:
- Month 1-3: Hire SDR #1, slow ramp
- Month 4-5: Underperforming, you try to coach
- Month 6: Fire/they quit
- Month 7-9: Hire SDR #2
- Month 10: They quit (better offer)
- Month 11-12: Decide to try outsourcing
Cost:
- SDR #1: ₹8L (6 months + severance)
- SDR #2: ₹6L (4 months)
- Extra recruitment: ₹1L (multiple rounds)
- Opportunity cost: ₹2L
- Total: ₹17L+
- Meetings generated: ~50 in year 1
- Cost per meeting: ₹34,000
The 3-Person SDR Team: Real Numbers
Most startups need at least 3 SDRs to get meaningful pipeline. Here's what that costs:
Year 1 Costs (3 SDRs)
| Category | Cost |
|---|---|
| 3 SDRs (full loaded) | ₹43.5L |
| 1 SDR Manager (₹8L salary + overhead) | ₹12L |
| Replacement hiring (1.5 people) | ₹3L |
| Extra management overhead | ₹2L |
| TOTAL YEAR 1 | ₹60.5L |
Expected output (if things go well):
- Months 1-3: Ramp (low output)
- Months 4-12: 60-75 meetings/month
- Annual total: ~600-700 meetings
Cost per meeting: ₹8,650-10,000
Cost Comparison: In-House vs Outsourced
Let's be brutally honest about the math:
In-House (3 SDRs + Manager)
| Metric | Year 1 | Year 2 |
|---|---|---|
| Total Cost | ₹60.5L | ₹55L (slightly better with less churn) |
| Meetings Generated | 600-700 | 900-1000 (if stable) |
| Cost Per Meeting | ₹8,650-10,000 | ₹5,500-6,000 |
| Management Time | 20 hrs/week | 15 hrs/week |
| Risk | High (attrition) | Medium (ongoing churn) |
Outsourced (SalesUp Model)
| Metric | Year 1 | Year 2 |
|---|---|---|
| Total Cost | ₹36L (₹3L × 12 months) | ₹36L |
| Meetings Generated | 360-400 (30-35/month) | 420-480 |
| Cost Per Meeting | ₹9,000-10,000 | ₹7,500-8,500 |
| Management Time | 2 hrs/week | 2 hrs/week |
| Risk | Low (vendor handles) | Low |
Key Difference: In-house becomes cheaper in Year 2-3 IF you can maintain the team. Most can't.
The Hidden Multipliers: What Makes Costs Explode
Multiplier #1: Attrition (45-60% annually)
Every replacement costs:
- Recruitment: ₹50k
- Lost productivity: 2-3 months
- Training time: ₹30k
- Manager distraction: ₹20k
Total per replacement: ₹1.5-2L
With 3 SDRs and 50% attrition = 1.5 replacements/year = ₹3L extra
Multiplier #2: Underperformance Tax
Reality: Only 40-50% of SDRs hit quota consistently.
This means:
- You hired 3 SDRs
- Only 1.5 are actually producing
- You're paying ₹60L for output of 1.5 people
- Effective cost: 2X what you budgeted
Multiplier #3: The "Bad Hire" Spiral
One bad hire can destroy your entire operation:
- Corrupts data in CRM
- Damages brand with poor outreach
- Demoralizes other SDRs
- Takes 3-6 months to realize and fix
Cost: ₹5-10L in destroyed pipeline and brand damage
Multiplier #4: The Tool Sprawl
You start with basic tools, then add:
- Better CRM (upgrade from free tier)
- More data (initial budget was too low)
- Call intelligence (needed for coaching)
- Engagement platforms (trying to boost performance)
- Analytics tools (trying to understand why things aren't working)
Original budget: ₹10k/month Reality by Month 6: ₹25-30k/month
When In-House Actually Makes Financial Sense
Here's the honest math on when hiring makes sense:
Break-Even Analysis
In-house becomes cheaper IF:
-
You keep the team for 24+ months
- Year 1: ₹60.5L (build + ramp)
- Year 2: ₹55L (optimized)
- Year 3: ₹50L (mature)
- 3-year total: ₹1.65 crore
-
Outsourced alternative:
- Year 1-3: ₹36L/year
- 3-year total: ₹1.08 crore
In-house saves money IF:
- You scale to 10+ SDRs (economies of scale kick in)
- Attrition drops below 30% (rare but possible)
- You build AE career path (reduces churn)
- Your team becomes a competitive advantage
For most startups? That's a big IF.
The Real Question: What's Your Cost Per Qualified Meeting?
Forget "cost per SDR." The only number that matters is:
Cost per qualified meeting that moves to demo.
Industry benchmarks in India (2025):
| Method | Cost Per Meeting | Notes |
|---|---|---|
| Inbound Marketing | ₹12,000-20,000 | High quality, but slow to scale |
| Paid Ads | ₹15,000-30,000 | Fast but expensive |
| Events/Conferences | ₹20,000-40,000 | Great for brand, costly |
| In-House SDRs (Year 1) | ₹10,000-16,000 | High upfront, scales better later |
| Outsourced SDRs | ₹8,000-10,000 | Predictable from month 1 |
| Founder-led | ₹0 (time cost: ₹50,000) | Doesn't scale |
Hidden Savings in Outsourcing
What most founders miss in the calculation:
1. Opportunity Cost of Your Time
- Managing SDRs: 20 hours/week
- Your hourly value: ₹5,000+ (if you're a founder/CXO)
- Annual value of freed time: ₹50L+
2. Faster Time to Revenue
- In-house: First meeting in Month 4-5
- Outsourced: First meeting in Week 2-3
- 3-4 months of lost pipeline = ₹10-20L in delayed revenue
3. No Hiring Risk
- Bad hire cost: ₹5-10L
- Probability of bad hire: 30-40%
- Expected cost of hiring risk: ₹2-4L
4. Built-in Expertise
- Training/playbook development: ₹5L+
- Trial and error tax: ₹3L+
- Learning curve cost: ₹8L+
Total hidden savings: ₹70L+ over 24 months
The Bottom Line: Do the Math for YOUR Situation
Use this formula:
True Cost Per Meeting =
(All-in SDR costs + Hidden costs + Opportunity cost of time)
÷
Number of qualified meetings generatedThen ask:
- Can we afford ₹15L+ per SDR in Year 1?
- Do we have 12+ months to see ROI?
- Can we handle 50% attrition?
- Is our founder/CXO time worth 20 hours/week on SDR management?
If you answered "no" to any of these, outsourcing is financially smarter.
What We Do at SalesUp
At SalesUp, we've run the numbers obsessively:
What you pay: ₹2.5-3L/month What you get:
- 30+ qualified meetings/month (guaranteed)
- Trained SDRs + experienced managers
- All tools & infrastructure included
- No hiring, training, or attrition risk
- 2 hours/month of your time (not 20 hours/week)
Effective cost per meeting: ₹8,000-10,000
Savings vs in-house:
- Year 1: ₹24L (₹60.5L - ₹36L)
- Plus 1,000+ hours of your time
- Plus zero hiring/attrition risk
Book a demo to see the full cost comparison for your specific situation.
Remember: The cheapest option is rarely the most cost-effective one.