# How to Calculate Sales Velocity Per Opportunity

Sep 18th, 2018

This blog post was originally published by Rekener, now a Brainshark company.

Sales velocity measures the expected output you would get from a sales rep or team in a given period of time.

Sales velocity on a per opportunity basis measures the expected output from a single opportunity or deal in a given period of time.  To calculate sales velocity per opportunity, you multiply your ASP and close rate, and then divide that by your sales cycle, measured over the same duration that you are measuring.

For example, if your ASP is \$20,000, your close rate is 30%, and your sales cycle is 4 months, then your sales velocity would be (\$20,000 * 30%) / 4 months = \$1,500 per month.  This means you would expect to close \$1,500 per month from each opp that is being produced.

To measure sales velocity per opportunity with Salesforce data, you first need to calculate close rate, ASP, and sales cycle from your Salesforce data.

• To measure closed funnel close rate with Salesforce data, count the number of opportunities won that have a close date in the period, then count the number of opportunities lost that have a close date in the period.  Then divide the opportunities won by the sum of the opportunities won plus lost.
• To measure ASP with Salesforce data, take the sum of the Amount from closed won opportunities that have a close date in the period you are looking at, and divide by the number of opportunities won that have a close date in the period you are looking at.
• To measure sales cycle with Salesforce data, you need to run a report of opportunities won in the period you want to measure.  Count how many opps that is. Then, for each opp, calculate the number of days between Created Date and Close Date. Sum up that total number of days.  Divide that by 30 to make it monthly. Then divide the number of months by number of opps you won.

Once you have close rate, ASP and sales cycle from your Salesforce data, you need to multiply (close rate * ASP) and divide by sales cycle.

To measure sales velcoity per deal with HubSpot CRM data, you first need to calculate close rate, ASP and sales cycle from your HubSpot CRM data.

• To measure closed funnel close rate with HubSpot CRM data, count the number of deals won that have a close date in the period, then count the number of deals lost that have a close date in the period.  Then divide the deals won by the sum of the deals won plus lost.
• To measure ASP with HubSpot CRM data, take the sum of the Amount from closed won deals that have a close date in the period you are looking at, and divide by the number of deals won that have a close date in the period you are looking at.
• To measure sales cycle with HubSpot CRM data, you need to run a report of deals won in the period you want to measure.  Count how many deals that is. Then, for each deal, calculate the number of days between Created Date and Close Date. Sum up that total number of days and then divide by 30 to make it monthly.  Then divide the number of months by number of deals you won.

Once you’ve calculated close rate, ASP and sales cycle with your HubSpot CRM data, you need to multiply (close rate * ASP) and divide by sales cycle.

Sales scorecards can automate sales velocity calculations, and can break this down by sales rep, opportunity type, industry, product, or any other dimension.

Looking for more sales metrics know-how? Our comprehensive Sales Metrics Glossary will show you how to calculate 30 critical KPIs using CRM data.