Average Deal Size Calculator
Analyze your deal sizes to understand your average, median, and distribution. Make better forecasting and planning decisions.
Enter Your Deals
Enter your recent closed deals to analyze your average deal size and distribution.
Understanding Average Deal Size
Average deal size (ADS) is a fundamental sales metric that directly impacts revenue forecasting, territory planning, and sales strategy. Understanding your deal size distribution helps optimize your sales motion.
Why Average Deal Size Matters
- Pipeline requirements: Larger deals mean fewer opportunities needed to hit quota.
- Sales cycle correlation: Bigger deals typically have longer sales cycles.
- Team structure: Determines whether you need SMB, mid-market, or enterprise teams.
- CAC implications: Must be balanced against customer acquisition cost.
Average vs. Median Deal Size
Average (Mean): Sum of all deals divided by count. Can be skewed by outliers.
Median: The middle value when deals are sorted. More representative of typical deal.
If your median is much lower than your average, it means a few large deals are pulling up the average. Use the median for more conservative forecasting.
How to Increase Average Deal Size
- Move upmarket: Target larger companies with bigger budgets.
- Bundle products: Combine multiple products or services into packages.
- Multi-year contracts: Offer discounts for longer commitments.
- Value-based pricing: Price based on value delivered, not cost.
- Upsell during sales cycle: Introduce premium tiers before closing.
- Land and expand: Start smaller, expand after proving value.
Deal Size Benchmarks by Market Segment
SMB
$5K - $25K ACV. High volume, short cycles.
Mid-Market
$25K - $100K ACV. Balanced volume and size.
Enterprise
$100K - $500K+ ACV. Low volume, high touch.
Strategic
$1M+ ACV. Named accounts, multi-year.
Warning Signs in Deal Size Analysis
- Declining average: May indicate pricing pressure or market shift.
- Extreme variability: Hard to forecast; may need market segmentation.
- Concentration risk: If top 5 deals are 50%+ of revenue, diversification needed.
- Stagnant deal size: No growth over time despite product improvements.
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