Average Deal Size Calculator

How to calculate Average Deal Size?

Average Deal Size (ADS) is a key sales velocity metric that measures the average revenue generated from each closed-won deal. Tracking this metric helps sales leaders understand the value of their customer contracts and identify trends in purchasing behavior.

Average Deal Size = Total Revenue / Number of Deals

Using the calculator: an example

To illustrate, imagine a scenario where your sales team generated $500,000 in total revenue across 25 deals during a specific quarter.

Step-by-step calculation:

1. Sum up all closed-won revenue for the period ($500,000).
2. Count the total number of deals closed during that same period (25).
3. Divide the total revenue by the deal count to find the average ($20,000).

Frequently Asked Questions

Why is average deal size important? It helps businesses forecast future revenue more accurately and allows management to allocate resources effectively across different sales segments.

How can I increase my average deal size? You can increase this metric by implementing upselling and cross-selling strategies, or by shifting your outbound focus toward larger, enterprise-level companies.

Should I exclude outliers? Yes, extremely large or unusually small deals can skew the average. It is often helpful to calculate a "trimmed average" to see the performance of your typical sales cycle.