How to use it
- Enter the number of qualified opportunities in the pipeline.
- Enter the average deal size.
- Enter your win rate in percent.
- Enter the average sales cycle length in days.
Formula
- Sales velocity = opportunities × average deal × win rate ÷ cycle days
- Expected revenue = opportunities × average deal × win rate
- Per 30 days = velocity × 30; per year = velocity × 365
Worked example
50 opportunities, an average deal of 20,000, a 25 % win rate and a 60-day cycle:
- Expected revenue = 50 × 20,000 × 0.25 = 250,000.00, from 12.5 deals.
- Velocity = 250,000 ÷ 60 = 4,166.67 a day.
- Per 30 days 125,000.00; per year 1,520,833.33.
Tips
- Track velocity per segment or sales rep: averages hide where the pipeline stalls.
- A bigger deal size often comes with a longer cycle; check that velocity really rises.
- Compare periods with the same definitions of opportunity and win.