The formula
Average deal size = revenue from deals won in the period / number of deals won
It tells you what one closed sale is worth to you, on average, so you can work out how many deals a target needs.
As of November 2026.
How to calculate average deal size
Take the deals you won in one period. Add up what they were worth, and divide by how many there were.
Worked example, with made-up figures: last quarter your team won 14 deals worth S$84,000 in all, so your average deal size is S$84,000 / 14 = S$6,000.
Now say one of those 14 was a single S$30,000 contract. The other 13 were worth S$54,000, an average of S$4,154. If the big one was a one-off, S$4,154 is the honest number to plan on.
How to turn it into a deal count
Divide your target by your average deal size to get the deals you need. Divide the deals by your win rate to get the opportunities. Divide those by how many meetings it takes to make one.
Worked example, with the same made-up team: next quarter's target is S$96,000. At S$6,000 a deal, that's 16 deals. At a 25% win rate, it's 64 opportunities. If 1 in 2 meetings becomes an opportunity, it's 128 meetings, or about 10 a week across a 13-week quarter. With 4 reps, that's 2.5 meetings each a week.
At S$4,154 a deal, the same target needs 24 deals, not 16. Your weekly meeting number moves with it, so settle the deal size first.
How to measure it in your team
- Count won deals only. Open and lost deals have no final value yet.
- Use one measure of value and keep it. PayPro Global lists annual contract value, total contract value and one-time revenue. Mixing them makes the average meaningless.
- Measure new business and renewals separately. A drop in either hides inside a blend.
- Look at the median beside the average. If they're far apart, a few large deals are carrying the number.
- Split it by rep and by source when you want to know where bigger deals come from.
What a good average deal size looks like
No outside figure helps much here, because what you sell and who buys it set the number. Compare with your own last four quarters. Good is steady or rising without the win rate falling.
| Who's looking | What they check | What good looks like |
|---|---|---|
| Sales manager | Average and median by rep and by source, each month | The two sit close together, and no rep's deals shrink quarter after quarter |
| Rep | Their own median against the team's | Proposals that lead with the full option |
| Owner | Deal size against the cost of winning a deal | Each deal is worth well above what it cost to win |
Why is your average deal size dropping?
- Discounts are creeping in to get deals over the line.
- Enquiries are coming from smaller buyers than last quarter.
- Reps are proposing one product when the buyer needed two.
- A rep behind on a deal count target is closing small deals to hit it.
What raises it:
- Put the fuller option first in every proposal, with the smaller one beside it.
- Price in tiers, so a buyer who needs more has an obvious step up.
- Ask about the next need at every review with an existing customer.
- Set targets in revenue rather than deal count, so a small deal doesn't count the same as a big one.
- Negotiate on value and qualify properly, two of Force Management's four tips.
Work out your average deal size
Put in your own revenue, deals and next target. The boxes start with the worked example's numbers.
Average deal: $6,000
- Deals the target needs: 16
Where it shows up in your week
Palby Sales Tracker doesn't work out dollars or deal size. That number lives in your sales records. It counts the deals and the meetings: each one is a tap, and the board shows each rep's count for this week or any dates. Turn your meeting number into a weekly points goal for each rep.
Keep reading
Common questions
What one closed sale is worth. Say which measure you're using, such as yearly contract value or the one-off price.
Revenue divided by customers, not deals. If those 14 deals came from 10 customers, it's S$8,400 per customer against S$6,000 per deal.
Close. Average contract value usually means the yearly value of a contract, while average deal size can use any measure.
Both. The average goes into revenue sums, and the median tells you what a typical deal is worth.
No. Only won deals have a final value. Lost deals belong in win rate.
Each month, over the last three months, so one large deal doesn't swing it.
Sources
- PayPro Global, What is SaaS average deal size, read 2 November 2026
- Techdella, Average deal size glossary entry, read 2 November 2026
- Force Management, The 4 best tips for increasing your average deal size, read 2 November 2026