Deal Velocity
What is Deal Velocity?
Deal Velocity tracks the average time it takes for a sales opportunity to go from open to closed-won.
Formula:
Deal Velocity = Total Time to Close for All Won Deals ÷ Number of Won Deals
You can calculate this in days or weeks depending on your sales cycle length.
Example: If five deals closed in a quarter and took 30, 45, 40, 35, and 50 days respectively, your average deal velocity is 40 days.
Some teams also use a pipeline velocity formula that incorporates value, win rate, and number of deals—but here we’re focused on speed-to-close.
Why It Matters in B2B SaaS
- It accelerates cash flow. Faster closes = earlier revenue recognition
- It boosts rep efficiency. Reps can work more deals over time
- It improves forecasting accuracy. Shorter, predictable cycles reduce forecasting noise
- It highlights friction. Long deal times can expose gaps in qualification, objection handling, or approvals
- It supports GTM segmentation. Different segments (e.g., SMB vs. enterprise) should have tailored velocity benchmarks
How to Measure Deal Velocity
Step 1: Track the open date and close date for each closed-won opportunity
Step 2: Subtract the open date from the close date to get total days in cycle
Step 3: Average across all won deals in your analysis period
Step 4: Segment by:
- Deal size or segment (SMB, MM, ENT)
- Sales motion (inbound vs. outbound)
- Rep or team
- Product or use case
- Region or territory
Best Practices
- Standardize opportunity creation criteria. Make sure the “start” date is consistent (e.g., qualified opportunity, not just lead)
- Track both median and average. Outliers can skew averages
- Use CRM automation. Automatically record timestamps for creation and close
- Pair with win rate and ACV. A fast close isn’t always a good one if it’s discounted or low-value
- Diagnose slow stages. Look at where deals stall—proposal, legal, procurement, etc.—to fix process bottlenecks
Deal Velocity is your sales engine’s speedometer. It doesn’t just tell you how fast you’re moving—it uncovers what’s dragging you down or helping you win faster. In high-growth SaaS, improving velocity can unlock scale without adding more reps or doubling the pipeline.