Formula
Average Deal Size = Total Revenue from Deals ÷ Number of Deals Closed
Calculation Example
If a sales team closed 50 deals worth $500,000, Average Deal Size = 500,000 ÷ 50 = $10,000
Data Source
CRM software, sales reports
Tracking Frequency
Monthly, Quarterly, Annually
Optimal Value
Higher is generally better, indicating higher-value sales.
Minimum Acceptable Value
A declining deal size may indicate pricing pressure or lower-value customers.
Benchmark
B2B ~$5,000-$50,000, Enterprise SaaS ~$50,000-$500,000
Recommended Chart Type
Bar chart (to compare deal sizes), Line chart (to track trends)
How It Appears in Reports
Displayed in financial and sales reports to track deal profitability.
Why Is This KPI Important?
Indicates whether a company is securing high-value contracts.
Typical Problems and Limitations
Does not consider total revenue; increasing deal size at the cost of fewer deals may not be ideal.
Actions for Poor Results
Optimize pricing strategy, focus on upselling and cross-selling, target high-value clients.
Related KPIs
Sales Revenue, Customer Lifetime Value (CLV), Win Rate
Real-Life Examples
A SaaS company increased Average Deal Size by 20% by introducing annual contracts instead of monthly subscriptions.
Most Common Mistakes
Focusing only on increasing deal size without maintaining a steady deal flow.
