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Definition

What is Pipeline Velocity?

The expected revenue a sales pipeline produces per day.

Pipeline velocity converts a static pipeline value into a rate of revenue movement. It multiplies qualified opportunities, win rate, and average deal size, then divides by sales cycle length. A large pipeline with a long cycle can move more slowly than a smaller, faster one — velocity exposes that difference and shows which lever (volume, win rate, deal size, cycle time) to pull.

Formula

Velocity = (Qualified Leads × Win Rate × Avg Deal Size) ÷ Sales Cycle Days

Example

40 qualified leads × 25% win rate × $8,000 avg deal ÷ 45-day cycle = $1,778 of expected revenue movement per day.

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