Sales Pipeline Velocity Calculator

Formula

The formula to calculate the Sales Pipeline Velocity (SPV) is:

\[ SPV = \frac{SQL \cdot ADS \cdot \left(\frac{WR}{100}\right)}{LSC} \]

Where:

$SPV$ is the sales pipeline velocity ($/day)
$SQL$ is the number of sales qualified leads in the pipeline
$ADS$ is the average deal size ($)
$WR$ is the win rate of the leads (%)
$LSC$ is the length of the sales cycle (days)

Sales Pipeline Velocity Definition

A sales pipeline velocity measures the total value of the sales pipeline on a revenue per day level. In other words, it indicates how quickly new leads turn into new customers.

Example Calculation

Let's assume the following values:

Number of Sales Qualified Leads (SQL) = 50
Average Deal Size (ADS) = $2000
Win Rate (WR) = 20%
Length of Sales Cycle (LSC) = 30 days

Using the formula to calculate the Sales Pipeline Velocity (SPV):

\[ SPV = \frac{50 \cdot 2000 \cdot \left(\frac{20}{100}\right)}{30} \approx 66.67 \]

The Sales Pipeline Velocity (SPV) is approximately $66.67 per day.