Pipeline velocity calculator: Revenue per day from opportunities, win rate, deal size and cycle length
Pipeline velocity is the revenue your pipeline produces per day: open opportunities times win rate times average deal value, divided by the sales cycle in days. Enter your four numbers and the calculator returns velocity per day, per month and per quarter, and which of the four levers would add the most if you improved it by a tenth.
- Document
- Calculator
- Written by
- Take the Market Desk
- Inputs
- Example inputs, yours to replace
Pipeline velocity calculator
Worked example, with the default inputs
Your pipeline produces about $6,667 of revenue a day, or $606.67k a quarter. A tenth more opportunities, win rate or deal value adds $667 a day each; a tenth shorter cycle adds $741.
velocity = opportunities × win rate × average deal value ÷ sales cycle in days
How it is worked out
velocity = opportunities × win rate × average deal value ÷ sales cycle in days
- opportunities
- open, qualified opportunities in the pipeline now
- sales cycle
- average days from opportunity creation to close, won deals only
| Numerator | 60 × 25% × $40,000 = $600,000 |
|---|---|
| Per day | $600,000 ÷ 90 days = $6,667 |
| Per quarter | $6,667 × 91 days = $606,667 |
Your pipeline produces about $6,667 of revenue a day, or $606.67k a quarter. A tenth more opportunities, win rate or deal value adds $667 a day each; a tenth shorter cycle adds $741.
Where the defaults come from
No default on this calculator is a published benchmark. Each is an example input chosen so the arithmetic is easy to follow; type your own.
| Input | Default, an example input |
|---|---|
| Open qualified opportunities | 60 |
| Win rate | 25% |
| Average deal value | $40,000 |
| Sales cycle | 90 |
How to use velocity
Velocity is most useful as a trend and as a way to compare segments, because it puts four numbers into one. Track it monthly by segment and by source; a segment whose velocity falls while its pipeline grows is filling up with deals that will not close soon.
The three numerator levers act in proportion: a tenth more of any of them adds a tenth to velocity. The cycle sits in the denominator, so a tenth shorter cycle adds a ninth, slightly more than a tenth.
Which numbers to use
Every default is an example input, not a benchmark. Take open qualified opportunities, win rate by value, average deal value and the cycle of won deals from your CRM, for the same segment.
Embed this calculator
Paste this into any page to show the live calculator with its formula and worked example, linked back here.
<iframe src="https://www.takethemarket.com/embed/pipeline-velocity" title="Pipeline velocity, from Take the Market" width="100%" height="924" style="border:0;max-width:1100px" loading="lazy"></iframe>See how we work, or report an error on the corrections page.