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Sales Velocity Calculator

Sales velocity puts four pipeline numbers into one figure: how much revenue your pipeline produces per day. It is useful because it shows the trade-offs — a bigger deal that takes twice as long to close can be worth less than a smaller one, and this is the sum that proves it. Enter your four numbers below for a daily, monthly and quarterly figure. Everything runs in your browser, so nothing you type is sent anywhere.

Enter your open opportunities, average deal value, win rate and sales cycle length to see a result.

How this works

The formula is:

(opportunities × average deal value × win rate) ÷ sales cycle length in days = revenue per day

The top half is what your current pipeline is worth once you allow for the fact that you will not win all of it. The bottom half spreads that over the time it takes a deal to get through. The answer is a rate, not a forecast: it says "at this shape of pipeline, revenue arrives at roughly this speed".

The monthly and quarterly figures are the daily rate multiplied out, using 30.4 days to the month and 91.3 to the quarter — a year divided by twelve and by four. If you would rather work in selling days, multiply the daily figure by 21 for a month instead.

Definitions to settle before you use it: opportunities means live, qualified deals rather than every lead in the CRM; win rate is the share of those opportunities you eventually win; and cycle length is the average number of days from an opportunity being created to it closing. Use the same source for all four or the number will not mean much.

A worked example

A team has 40 open opportunities, an average deal value of £8,000, a 25% win rate and a 60-day sales cycle.

Now use it to compare options. Suppose you can either add 10 more opportunities, or cut the cycle from 60 days to 45.

Taking fifteen days out of the cycle beats adding a quarter more pipeline — and it costs you no extra prospecting. That is the usual reason to run this calculation: the four levers look equally worthy until you see what each one is actually worth. Note too that velocity rises even if the win rate falls, as long as the other levers move further, which is why it is worth watching alongside the rate rather than instead of it.

What this doesn't account for

For the thinking behind the metric, see sales velocity: the metric most teams ignore. If your stages or win rates are shaky, sales pipeline stages explained is the place to start, and the sales conversion rate calculator will show you which stage is holding the rate back.

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