KPISales

Pipeline Velocity

Rate at which opportunities move through the pipeline and generate revenue

What is Pipeline Velocity?

Pipeline velocity is the amount of revenue moving through the sales pipeline each day. It combines the number of opportunities, the win rate, the deal size and the length of the sales cycle into one figure.

It shows how fast a team turns pipeline into revenue and which lever, of the four, offers the most room to improve.

How this KPI is measured

Function
Sales
Sub-function
Pipeline Management
Industry
All Industries
Type
Leading
Impact
Efficiency
Unit
$/day
Measurement frequency
Monthly / Quarterly
Formula
(Number of opportunities × Win rate × Average deal size) / Average sales cycle length in days

How to calculate it

Multiply the number of opportunities by the win rate and the average deal size, then divide by the average sales cycle length in days.

For example, with 100 opportunities, a 25% win rate, an average deal of 20,000 and a 50-day cycle, velocity is (100 x 0.25 x 20,000) / 50 = 10,000 per day.

Improving any one of the four inputs raises velocity, so the formula also shows where effort has the most effect.

Where it is used

  • Finding the best lever

    See whether volume, win rate, deal size or speed is the best place to improve.

  • Tracking sales health

    Watch one number that reflects the whole process.

  • Forecasting

    Estimate revenue over a period.

How to improve it

Tips and common mistakes

  • Use consistent definitions for opportunities and deal size.
  • Raising one input can lower another, such as pushing deal size and lengthening the cycle.
  • Calculate for comparable segments.

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