Average Deal Size
Average monetary value of closed deals
What is Average Deal Size?
Average deal size is the average revenue from each closed deal. It shows the typical value of a sale.
It is one of the four levers of sales revenue, alongside volume, win rate and sales cycle, so knowing it helps plan targets and pipeline.
How this KPI is measured
- Function
- Sales
- Sub-function
- Revenue Management
- Industry
- All Industries
- Type
- Lagging
- Impact
- Revenue
- Unit
- $
- Measurement frequency
- Monthly / Quarterly
- Formula
- Total revenue from closed deals / Number of closed deals
How to calculate it
Divide total revenue from closed deals by the number of closed deals.
For example, if 50 deals closed with total revenue of 1,500,000, the average is 30,000.
Also look at the median, and split by segment, since a few large deals can lift the average.
Where it is used
Planning targets
Work out deals needed for a goal.
Choosing target segments
Focus on higher-value customers.
Tracking pricing and mix
See changes over time.
How to improve it
Tips and common mistakes
- Use median as well as mean.
- Larger deals often take longer to close.
- Compare over consistent periods.
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