What is pipeline velocity?
Pipeline velocity measures how quickly your pipeline turns into revenue, calculated as the number of opportunities multiplied by average deal value and win rate, divided by the length of the sales cycle.
Pipeline velocity equals opportunities times average deal value times win rate, divided by sales cycle length. It rises when you have more opportunities, larger deals, or a higher win rate, and when the cycle gets shorter.
For example, 40 open opportunities, an average deal value of $20,000, a 20% win rate, and a 100-day cycle give a velocity of about $1,600 per day (40 × $20,000 × 0.20 ÷ 100). Shortening the cycle raises velocity without adding any pipeline.
Use it to compare periods or segments rather than as a single target. Pair it with stage-by-stage conversion rates to find where the pipeline slows.
It affects CAC because a slower pipeline means more sales cost per closed deal, and a faster one spreads the same cost across more wins.