Sales velocity is a formula that measures how fast revenue moves through your pipeline. It multiplies the number of opportunities by your average deal size and your win rate, then divides by your sales cycle length. The result is the revenue you can expect per period. It is the single number that explains why two teams with the same quota feel so different: the team that closes faster and wins more moves more closed-won revenue in the same amount of time.
In plain English
Velocity is how quickly pipeline turns into money. You can grow it four ways: get more deals into the pipeline, sell bigger deals, win a higher percentage, or shorten the cycle. Most reps can only control a couple of these at a time, so leaders look at velocity to find which lever is broken.
Why it matters to you
Velocity is how forecasts are built and how salespeople are compared. When a manager asks why your results lag, they are usually asking a velocity question. Understanding it helps you set realistic expectations about what the pipeline will actually produce — and it shows in an interview that you think in terms of outcomes, not just activity.