Pipeline Coverage Ratio
Ratio of total pipeline value to revenue target, indicating whether enough pipeline exists to hit target
What is Pipeline Coverage Ratio?
Pipeline coverage ratio compares total pipeline value with the revenue target for the period. It shows whether there is enough pipeline to reach the goal.
A common rule of thumb is to hold several times the target in pipeline, because only a share of it will close.
How this KPI is measured
- Function
- Sales
- Sub-function
- Pipeline Management
- Industry
- All Industries
- Type
- Leading
- Impact
- Operational
- Unit
- x
- Measurement frequency
- Monthly / Quarterly
- Formula
- Total pipeline value / Revenue target for the period
How to calculate it
Divide total pipeline value by the revenue target for the period.
For example, if pipeline is 12,000,000 against a target of 4,000,000, coverage is 3x.
Work out the multiple you need from your win rate. If you win one in four deals by value, you need about 4x. Update it as the period progresses.
Where it is used
Early warning
See a shortfall in time to act.
Planning pipeline generation
Set targets for marketing and sales.
Forecasting
Judge the chance of hitting the target.
How to improve it
Tips and common mistakes
- Coverage of low-quality pipeline is misleading.
- Timing matters. Pipeline that will close after the period does not help.
- Use historic win rates by segment.
More Sales kpi library
Build better plans, faster
Join the waitlist for early access to curated insights, flexible templates, and rapid iteration across strategy, planning, and project management.