Forecast Coverage

What is Forecast Coverage?

Forecast Coverage is the ratio between the total value of pipeline available and the forecasted revenue for a given period.

Formula:

Forecast Coverage = Total Pipeline Value ÷ Forecasted Revenue

Example: If you have $1.2M in pipeline and forecast $600K in revenue, your forecast coverage is 2x.

While similar to Pipeline Coverage Ratio (pipeline vs. quota), forecast coverage is tied to your actual forecast—not your quota—and is especially useful during in-quarter tracking.

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Why It Matters in B2B SaaS

• It helps validate your forecast. If you’re forecasting $1M with only $800K in pipeline, something’s off
• It reveals pipeline risk. A low coverage ratio means you’re relying too heavily on a few large deals or late-stage pipe
• It supports sales coaching. Helps managers pressure-test whether rep forecasts are realistic
• It improves forecast confidence. Strong forecast coverage signals good stage progression and opportunity sizing
• It aids resource planning. Teams can align marketing and SDR efforts if coverage is light early in the quarter

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How to Measure Forecast Coverage

Step 1: Identify your forecasted revenue for a time period (usually quarterly)

Step 2: Sum the value of all pipeline deals expected to close in that period

Step 3: Divide pipeline value by the forecast value

Step 4: Segment by:

• Forecast category (Commit, Best Case)
• Team, rep, or region
• Deal type (New, Renewal, Expansion)

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Best Practices

• Target a 2–3x coverage ratio. This gives breathing room for slippage, losses, and slowdowns
• Use deal weighting. Weighted pipeline gives more realistic coverage calculations
• Inspect coverage quality. 3x coverage of weak-stage deals isn’t the same as 2x of well-qualified late-stage opps
• Monitor weekly. Especially mid- and late-quarter, to avoid forecast erosion
• Pair with Pipeline Velocity. Together, they tell you if your deals are moving fast enough to support your forecast