Sales Velocity Calculator

How to calculate Sales Velocity?

Sales velocity is a measurement of the speed at which revenue moves through your sales pipeline. It helps businesses understand how much revenue they can expect to generate over a specific period of time by evaluating the health and efficiency of their sales process.

(Opportunities × Deal Value × Win Rate) / Cycle Length

Using the Sales Velocity calculator: an example

In this example, we will look at a sales pipeline with 50 opportunities, an average deal size of $5,000, and a standard 60-day cycle.

Step-by-step calculation:

1. Multiply your total number of active opportunities by your average deal size.
2. Apply your historical win rate percentage to that total value to determine expected revenue.
3. Divide the expected revenue by the total number of days in your average sales cycle.

Frequently Asked Questions

How can I improve my Sales Velocity?

To increase velocity, you should focus on qualifying leads more effectively to boost your win rate, or optimizing your internal processes to shorten the sales cycle length.

Why does cycle length matter?

Cycle length is the denominator in the equation. The longer it takes to close a deal, the lower your overall velocity will be, meaning you are generating less revenue per day from your pipeline.

What does a 'good' velocity look like for B2B sales?

A 'good' velocity varies by industry, but in B2B, you should look for consistent growth in the metric rather than a specific number. Comparing your current velocity against your historical averages is the best benchmark.