Enter the SQLs in the pipeline, average deal size, overall win rate, and length of sales cycle into the calculator to determine the sales pipeline velocity.

Sales Pipeline Velocity Formula

The following equation is used to calculate the Sales Pipeline Velocity.

SPV = SQL * ADS * (WR/100) / LSC

  • Where SPV is the sales pipeline velocity ($/day)
  • SQL is the number of sales qualified leads in the pipeline
  • ADS is the average deal size ($)
  • WR is the win rate of the leads (%)
  • LSC is the length of the sales cycle (days)

What is a Sales Pipeline Velocity?

Definition:

A sales pipeline velocity measures the total value of the sales pipeline on a revenue per day level. In other words, how quickly new leads turn to new customers.

How to Calculate Sales Pipeline Velocity?

Example Problem:

The following example outlines the steps and information needed to calculate Sales Pipeline Velocity.

First, determine the number of sales qualified leads in the pipeline. In this example, this is 100.

Next, determine the average deal size. For this problem, the average deal size is found to be $500.00.

Next, determine the win rate of the leads. In this case, this is measured to be 45%.

Next, determine the length of the sales cycle. Each cycle lasts 30 days.

Finally, calculate the Sales Pipeline Velocity using the formula above:

SPV = SQL * ADS * (WR/100) / LSC

SPV = 100 * $500 * (45/100) / 30

SPV = $750 / day