Articles
Average deal size shows how much revenue each won deal produces on average.
The formula is:
Average deal size = total won revenue / won deals
For example, if a team wins $120,000 from 40 deals, average deal size is $3,000.
Deal size affects pipeline value, pipeline velocity, CAC payback, and the amount you can afford to spend on lead generation.
Use the Deal Size Calculator at /tools/deal-size-calculator, then compare the result with sales pipeline value, pipeline velocity, CAC, LTV, and revenue per lead.
How to calculate average deal size
Learn the average deal size formula and how it affects pipeline, CAC, and revenue planning.
The formula is:
Average deal size = total won revenue / won deals
For example, if a team wins $120,000 from 40 deals, average deal size is $3,000.
Deal size affects pipeline value, pipeline velocity, CAC payback, and the amount you can afford to spend on lead generation.
Use the Deal Size Calculator at /tools/deal-size-calculator, then compare the result with sales pipeline value, pipeline velocity, CAC, LTV, and revenue per lead.
Deal Size
Sales Pipeline
Revenue Per Lead
Related reading
CAC payback examples for paid marketing
Review CAC payback examples and see how margin and customer acquisition cost affect payback time.
How to calculate marketing funnel conversion rates
Learn how to calculate visitor-to-lead, lead-to-opportunity, and full-funnel conversion rates.
How to calculate lead-to-sale conversion rate
Learn the lead-to-sale conversion rate formula and how it connects lead generation to revenue.
Lead source ROI vs cost per lead
Lead source ROI and CPL answer different campaign questions. Learn why cheap leads are not always better.
Lead-to-sale conversion rate vs lead conversion rate
Lead-to-sale conversion rate is a narrower revenue-focused version of lead conversion rate.
CPA vs CAC: what is the difference
CPA and CAC both measure acquisition cost, but they are not always the same. Learn how marketers should compare them.
Useful tools
Deal Size Calculator
Calculate average deal size and revenue per customer from won revenue and deals.
Sales Pipeline Calculator
Calculate sales pipeline value and weighted pipeline from opportunities, deal size, and win rate.
Revenue Per Lead Calculator
Calculate revenue per lead and compare it with cost per lead.
Pipeline Velocity Calculator
Calculate sales pipeline velocity from opportunities, deal value, win rate, and sales cycle length.
CAC Calculator
Calculate customer acquisition cost from total sales and marketing spend and the number of new customers acquired.
LTV Calculator
Calculate customer lifetime value from average order value, purchase frequency, customer lifespan, margin, and CAC.