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Definition

What is Sales Cycle Length?

The average days from first qualified contact to closed-won.

Sales cycle length divides pipeline value into time — the same expected revenue moving through a 90-day cycle produces half the monthly velocity of a 45-day cycle. It also delays cash: a long cycle plus slow payment terms can starve a growing company. Shortening the cycle (fewer approval steps, faster proposals, mutual action plans) often adds more monthly revenue than raising win rate by the same relative amount.

Formula

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

Example

Cutting a 60-day cycle to 45 days raises daily pipeline velocity by 33% with no change in leads, win rate, or deal size.

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