Pipeline Velocity
Pipeline Velocity is A composite metric measuring how quickly revenue moves through the sales pipeline, calculated as (number of opportunities × win rate × average deal size) ÷ sales cycle length.
Pipeline velocity is the single most comprehensive metric for revenue health. It captures four dimensions in one number: how many deals you have, how often you win, how big they are, and how fast they close.
The Formula
Pipeline Velocity = (Opportunities × Win Rate × Avg Deal Size) / Sales Cycle Length
For example: 100 opportunities × 25% win rate × $50,000 ACV / 90 days = $13,889/day in pipeline velocity.
Why It Matters
Unlike revenue (a lagging indicator), pipeline velocity is a leading indicator of revenue trajectory. When velocity declines, you'll feel it in revenue 1-2 quarters later. When it increases, revenue follows.
The metric also reveals which lever to pull. If velocity drops because win rate fell while deal size stayed constant, that's a qualification or competitive problem. If velocity drops because cycle length increased, that's a process or buying committee problem.
For more metrics, see The 25 RevOps KPIs That Actually Matter.
Frequently Asked Questions
What is a good pipeline velocity?
There's no universal benchmark because it depends on your deal size, cycle length, and volume. What matters is the trend — is your velocity increasing or decreasing quarter over quarter?
How often should you measure pipeline velocity?
Monthly for trend tracking, quarterly for strategic decisions. Weekly is too noisy for most sales cycles.
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