Commercial Growth

Sales velocity formula for B2B: how to calculate it, with a worked example

10 mins read

A brushed silver speed gauge with a four-segment dial and a red needle pointing high, on a deep purple background.

KEY TAKEAWAYS

  • Sales velocity is open qualified opportunities × average won deal value × win rate ÷ sales cycle length. The answer is revenue per day.

  • Define each input with care: the open pipeline (not new opportunities), won deal value (not lifetime value), won ÷ all closed, and a cycle length that includes lost deals.

  • A 10% gain in any of the three multipliers adds 10%. A 10% shorter cycle adds 11.1%. Small gains in all four compound to almost 48%.

  • Calculate velocity by segment. The blended number can rise while new business quietly shrinks.

  • There's no universal benchmark. Track your own trend each month, per segment, over a trailing period.

The sales velocity formula is: open qualified opportunities × average won deal value × win rate ÷ sales cycle length. The answer is the revenue your current pipeline produces per day. Most organisations can calculate it. Far fewer use it to understand what is driving the number.

Below is how to calculate it for a complex B2B sale, with a worked example in pounds, the Excel formulas to build it from a CRM export, and what a 10% improvement in each lever is actually worth. It also covers where the textbook formula breaks when deals take months and involve a buying committee.

What is sales velocity?

Sales velocity measures how much revenue your pipeline produces per day. It combines the four drivers of sales performance into one number: how many opportunities you have, how much they're worth, how many you win and how long they take.

The total matters less than the parts. As we put it, revenue is the result and velocity explains why. Revenue is a lagging indicator: by the time it misses, the cause happened months ago. Velocity shows which driver moved while there is still time to act.

The sales velocity formula, and what each input means in B2B

Sales velocity = Opportunities × Average deal value × Win rate ÷ Sales cycle length

The formula is simple. Most errors come from how the four inputs are defined. In a B2B sale, use these definitions:

Input

Use this

Not this

Opportunities

Open, qualified opportunities in the pipeline on the day you measure

Leads, or opportunities created this month

Average deal value

Average value of won deals, using first contract value

Customer lifetime value

Win rate

Won deals ÷ all closed deals (won and lost) over the same period

Won deals ÷ all opportunities ever created

Sales cycle length

Average days from creation to close, for won and lost deals

Won deals only

The first row matters most. The formula divides by cycle length, so "opportunities" has to be the stock of open deals at a point in time. If you use opportunities created per month instead, you are dividing a monthly flow by a number of days and the result means nothing. Several popular guides make this mistake.

How to calculate sales velocity: a worked example

Here is an illustrative example. The figures are hypothetical, chosen to look like a UK mid-market B2B firm selling to buying committees.

Input

Value

Open qualified opportunities

120

Average won deal value

£48,000

Win rate

22%

Sales cycle length

140 days

Work it through in three steps:

  1. 120 opportunities × £48,000 = £5,760,000 of open pipeline.

  2. £5,760,000 × 22% = £1,267,200 of expected won revenue.

  3. £1,267,200 ÷ 140 days = £9,051 per day.

That is about £275,000 a month (using 365 ÷ 12 days per month), £826,000 a quarter and £3.3 million a year.

You can sense-check it another way. With 120 open opportunities and a 140-day cycle, about 26 opportunities close each month. At a 22% win rate that's 5.7 wins a month, and 5.7 × £48,000 is the same £275,000. The two routes agree only because "opportunities" means the open pipeline.

What a 10% move in each lever is worth

Improving any of the three multipliers by 10% lifts velocity by exactly 10%. Shortening the cycle by 10% lifts it by 11.1%, because cycle length sits below the line. Improve all four and the gains compound.

Change (from the example above)

Velocity per day

Change

Extra revenue a year

Baseline

£9,051



Opportunities +10% (132)

£9,957

+10.0%

+£330,000

Average deal value +10% (£52,800)

£9,957

+10.0%

+£330,000

Win rate +10% relative (24.2%)

£9,957

+10.0%

+£330,000

Sales cycle 10% shorter (126 days)

£10,057

+11.1%

+£367,000

All three multipliers +10%

£12,047

+33.1%

+£1.09m

All four levers together

£13,386

+47.9%

+£1.58m

That's why the biggest gains usually come from improving several drivers at once rather than from one big initiative.

Watch the win rate wording. "Improve win rate by 10%" can mean two very different things. Moving from 22% to 24.2% is a 10% relative improvement and adds 10% to velocity. Moving from 22% to 32% is ten percentage points and adds 45.5%. Even one point, from 22% to 23%, adds 4.5%, or about £150,000 a year in this example. Say which one you mean before it goes into a plan.

How to calculate sales velocity in Excel or Google Sheets

You can build a working calculator in a few cells, then feed it from a CRM export.

The calculator:

Cell

Label

Entry

B3

Open qualified opportunities

120

B4

Average won deal value (£)

48000

B5

Win rate

22%

B6

Sales cycle length (days)

140

B8

Sales velocity per day

=B3*B4*B5/B6

B9

Per month

=B8*365/12

B10

Per year

=B8*365

Type the win rate as 22% or 0.22, never as 0.22%. Excel reads 0.22% as 0.0022, which makes the result 100 times too small. One widely read vendor guide makes exactly this slip, writing a 25% win rate as 0.25%.

Pulling the inputs from a CRM export. Export your opportunities into an Excel table named Opps, with the columns Stage, Amount, Created, Closed and Segment, plus a helper column Days (=[@Closed]-[@Created]). Put the start and end of your measurement period in B16 and B17.

  • Open opportunities: =COUNTIFS(Opps[Stage],"<>Closed Won",Opps[Stage],"<>Closed Lost")

  • Win rate: =COUNTIFS(Opps[Stage],"Closed Won",Opps[Closed],">="&B16,Opps[Closed],"<="&B17)/COUNTIFS(Opps[Stage],"Closed*",Opps[Closed],">="&B16,Opps[Closed],"<="&B17)

  • Average won deal value: =AVERAGEIFS(Opps[Amount],Opps[Stage],"Closed Won",Opps[Closed],">="&B16,Opps[Closed],"<="&B17)

  • Sales cycle, won and lost: =AVERAGEIFS(Opps[Days],Opps[Stage],"Closed*",Opps[Closed],">="&B16,Opps[Closed],"<="&B17)

Stage names must match your CRM exactly. In Google Sheets, swap the table references for ranges such as C:C. With cycles this long, use a trailing 12-month period so a handful of deals can't swing the averages. Salesforce and HubSpot reports can supply the same four inputs.

Where the textbook formula breaks in a complex B2B sale

The formula works best for short, repeatable sales. In a long B2B sale with a buying committee, five things can make the number misleading.

A shorter cycle needs more pipeline to last. In the example, cutting the cycle to 126 days keeps 120 deals open only if the team creates about 29 new qualified opportunities a month instead of 26. If creation stays flat, the open pipeline settles at around 108 and velocity drifts back to £9,051 a day. A shorter cycle gives a lasting lift only when the time it frees up goes into more qualified pipeline. Otherwise it pulls revenue forward once.

Today's win rate describes old deals. With a 140-day cycle, this quarter's win rate mostly reflects opportunities created five months ago. Track win rate by the month deals were created, as well as the month they closed.

Stale deals inflate the pipeline. Opportunities with no activity for months raise the open count and lengthen the cycle. Agree a rule for closing them out, or your velocity looks healthier than it is.

Lost deals are often left out. Many teams measure cycle length on won deals only. Lost deals usually take a long time to die, so leaving them out understates the real cycle.

Buying committees move win rate and cycle together. Forrester's 2026 research found the typical buying decision now involves 13 internal stakeholders and nine external influencers. Gartner's 2025 survey of 632 B2B buyers found that 74% of buyer teams showed unhealthy conflict during the decision. When more people have to agree, deals take longer and more of them stall, so the win rate and the cycle often worsen together.

Calculate velocity by segment, not just in total

A single, blended velocity figure can hide a problem. New business and expansion deals behave very differently. In Ebsta and Pavilion's 2025 benchmark data, new business deals had a 19% win rate and a 91-day cycle, while expansion deals had a 45% win rate and closed in 52 days. That data comes mostly from technology companies, but the pattern is common.

Here is an illustrative example of what that does to the total. Every segment performs exactly the same in both quarters. Only the mix changes.

Segment

Open opps

Avg deal

Win rate

Cycle

Velocity per day

Quarter A: new business

90

£60,000

16%

160 days

£5,400

Quarter A: expansion

30

£33,600

40%

80 days

£5,040

Quarter A total





£10,440

Quarter B: new business

70

£60,000

16%

160 days

£4,200

Quarter B: expansion

50

£33,600

40%

80 days

£8,400

Quarter B total





£12,600

Total velocity is up 21%. New business velocity is down 22%. A board pack that shows only the total would miss a shrinking new-logo engine. Calculate velocity for each segment, then add the results together. Don't feed blended averages into one formula.

Whole-funnel or stage-based velocity?

Whole-funnel velocity tells you how fast revenue is produced. Stage-based velocity tells you where the time goes. Measure the average days spent in each stage and the conversion rate from each stage to the next, for won and lost deals separately.

In our diagnostics, opportunities frequently spend far longer in proposal and commercial stages than leaders expect. That's where cycle length is usually won or lost, and where a sales process with clear exit criteria makes the biggest difference. Our guide to CRM transformation explains how to set those criteria.

What is a good sales velocity?

There is no universal benchmark. Velocity scales with the size of your business and your deals, so a "good" number for one firm means nothing for another. Industry tables of velocity per day mix very different companies, so ignore them.

Compare against yourself instead. Calculate velocity each month on a trailing six or 12-month basis, per segment, and watch the direction of each driver. A falling win rate or a lengthening cycle is an early warning, often a quarter or two before revenue shows it.

From formula to diagnosis

The formula tells you what changed. It doesn't tell you why. A falling win rate might come from poor qualification, weak value messaging, the wrong segments or a buying group nobody mapped. Each one needs a different fix.

That is the sequence behind our approach. Sales Velocity Analysis™ establishes what is happening across the four drivers. The Growth Assessor™ explains why. Then the Accelerate Framework™ turns the findings into a plan for change. Most organisations skip straight to the change.

Before any of that, the data has to be right. Four steps make velocity reliable: define who owns each dataset, specify the fields that matter, remove duplicates and create one dataset that sales, marketing and finance all use.

Frequently asked questions

What is the formula for sales velocity?

Sales velocity = opportunities × average deal value × win rate ÷ sales cycle length. The answer is revenue per day. In B2B, use open qualified opportunities, the average value of won deals, won ÷ all closed deals, and the average cycle for won and lost deals.

Should I use open opportunities or opportunities created in the period?

Use open qualified opportunities at a point in time. If you want to use opportunities created per month, don't divide by cycle length: opportunities created × win rate × average deal value already gives you revenue per month.

What is a good sales velocity number?

There's no universal figure, because velocity scales with company size and deal size. Track your own trend monthly, per segment, over a trailing six to 12 months, and watch which of the four drivers is moving.

Is sales velocity the same as pipeline velocity or deal velocity?

Pipeline velocity usually means the same calculation. Deal velocity usually refers to how fast individual deals move through the pipeline, or the time to close. It's worth agreeing which term your team uses before you report it.

Should sales cycle length include lost deals?

Yes, for the velocity formula. It needs the average time all opportunities spend in the pipeline. Won-only cycle length is useful on its own, but it understates the real cycle and inflates velocity.

Sources

  1. Forrester, The State of Business Buying, 2026, press release, 21 January 2026. https://www.forrester.com/press-newsroom/forrester-2026-the-state-of-business-buying/

  2. Gartner, sales survey of 632 B2B buyers, press release, 7 May 2025. https://www.gartner.com/en/newsroom/press-releases/2025-05-07-gartner-sales-survey-finds-74-percent-of-b2b-buyer-teams-demonstrate-unhealthy-conflict-during-the-decision-process

  3. Ebsta and Pavilion, 2025 GTM Benchmarks. Vendor dataset, mostly technology companies. https://benchmarks.ebsta.com/hubfs/V3%202025%20Benchmark%20Report/gtm_benchmarks_digital_report.pdf

  4. John D. C. Little, "A Proof for the Queuing Formula: L = λW", Operations Research, 1961. The basis for using the open pipeline in the formula. https://doi.org/10.1287/opre.9.3.383

NEXT STEP

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Sales Velocity Analysis™ shows which of the four drivers is holding revenue back, where in the pipeline the time is lost, and what improving it is worth.

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WRITTEN BY

Chris Thomas

© 2026 Merlin5

© 2026 Merlin5