How to calculate average deal size, and turn it into a deal count

Divide revenue by deals won, then divide your next target by the answer. You'll know the deals and meetings your team needs.

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 lookingWhat they checkWhat good looks like
Sales managerAverage and median by rep and by source, each monthThe two sit close together, and no rep's deals shrink quarter after quarter
RepTheir own median against the team'sProposals that lead with the full option
OwnerDeal size against the cost of winning a dealEach 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.

Common questions

Sources

Know what a typical deal is worth.

Then count the meetings your target needs.

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