Average Deal Size
Published
October 22, 2026
Last updated
October 22, 2026
Definition
Average deal size is the total value of closed-won deals divided by the number of closed-won deals in a period. If a team closes 20 deals worth $200,000 in a quarter, its average deal size is $10,000. Subscription businesses often use annual contract value (ACV) or customer lifetime value instead of one-off deal value.
In sales planning, average deal size turns a bookings target into the number of deals you need to close. It's one of the 4 inputs to sales velocity, alongside number of opportunities, win rate, and sales cycle length. Combined with win rate, it tells you how much pipeline you need to hit plan and sets the baseline for pipeline coverage targets.
A single company-wide figure can mislead. Small, mid-market, and enterprise deals differ in value, and larger deals often come with longer sales cycles. Calculating average deal size for each segment keeps quota and forecast assumptions realistic.
Frequently Asked Questions
How do you calculate average deal size?
Divide the total value of closed-won deals by the number of closed-won deals in the same period. For example, 20 deals totaling $200,000 give an average deal size of $10,000.
How is average deal size different from annual contract value (ACV)?
Average deal size measures the average value of a closed deal, while ACV measures the average yearly value of a subscription contract. Subscription businesses often prefer ACV because it puts contracts of different lengths on the same annual basis.
How does average deal size fit into sales velocity and pipeline coverage planning?
It's one of the 4 sales velocity inputs: (number of opportunities × average deal size × win rate) ÷ sales cycle length. For pipeline coverage, it converts a bookings target into the deals you need to close and, with win rate, the pipeline you need to build.
See Pigment in action
The fastest way to understand Pigment is to see it in action. Sign up today and explore how agentic AI can transform the way you plan.
From 8 days to 4 min
Update P&L actuals & financial forecasting
80%
Time cut on data aggregation
12 hours
Saved per month on executive reporting
6 days faster
For scenarios creation and analysis