Definition
The total dollar value of all open sales opportunities at a point in time.
Formula
Sum of (Deal value x Stage probability) across all open opportunities
How to measure
Sum the weighted value of every open opportunity, multiplying each deal's value by its stage-based probability of closing.
Why track it
Pipeline value is the primary forward-looking indicator for revenue forecasting, well before deals actually close.
Example
A team reports $1.2 million in weighted pipeline value heading into the final month of the quarter against a $900,000 target.
FAQ
- What is Pipeline Value?
- The total dollar value of all open sales opportunities at a point in time.
- How do you calculate Pipeline Value?
- Sum of (Deal value x Stage probability) across all open opportunities
- Why track Pipeline Value?
- Pipeline value is the primary forward-looking indicator for revenue forecasting, well before deals actually close.