Pipeline Velocity Calculator Formula
Understand the math behind the pipeline velocity calculator. Each variable explained with a worked example.
Formulas Used
Pipeline Velocity ($/day)
pipeline_velocity = sales_cycle_days > 0 ? (opportunities * avg_deal_value * win_rate / 100) / sales_cycle_days : 0Expected Revenue from Pipeline
expected_revenue = opportunities * avg_deal_value * win_rate / 100Monthly Pipeline Velocity
monthly_velocity = sales_cycle_days > 0 ? ((opportunities * avg_deal_value * win_rate / 100) / sales_cycle_days) * 30 : 0Variables
| Variable | Description | Default |
|---|---|---|
opportunities | Number of Qualified Opportunities | 50 |
avg_deal_value | Average Deal Value(USD) | 10000 |
win_rate | Win Rate(%) | 25 |
sales_cycle_days | Average Sales Cycle (days) | 30 |
How It Works
How to Calculate Pipeline Velocity
Formula
Pipeline Velocity = (Opportunities x Deal Value x Win Rate) / Sales Cycle Length
Pipeline velocity measures the dollar value of deals flowing through your pipeline per unit of time. It combines four levers: the number of qualified opportunities, average deal size, win rate, and sales cycle length. Improving any one lever increases velocity. This metric helps sales leaders forecast revenue, identify bottlenecks, and allocate resources to the highest-impact improvements.
Worked Example
50 qualified opportunities with a $10,000 average deal value, 25% win rate, and 30-day sales cycle.
- 01Expected Revenue = 50 x $10,000 x 25% = $125,000
- 02Pipeline Velocity = $125,000 / 30 = $4,167/day
- 03Monthly Velocity = $4,167 x 30 = $125,000/month
Frequently Asked Questions
Which lever has the biggest impact on velocity?
It depends on your starting point. If win rate is 10%, doubling it to 20% doubles velocity. If sales cycle is 60 days, cutting it to 30 doubles velocity too. Analyze which lever has the most room for improvement in your specific situation.
How do I use pipeline velocity for forecasting?
Multiply pipeline velocity by the number of days in the forecast period. If velocity is $4,000/day, the 90-day forecast is $360,000. Track velocity trends month-over-month to spot acceleration or deceleration early.
Ready to run the numbers?
Open Pipeline Velocity Calculator