What is a sales cycle and how do you calculate it?

A sales cycle is the total time from first contact with a prospect to closing the deal. Calculate it by dividing the total number of days spent on all closed deals by the number of deals closed. For example, if 10 deals took a combined 840 days, your average sales cycle is 84 days.

What is a good sales cycle length?

It depends on your industry and deal size. SaaS companies average 84 days, SMB sales typically close in 30-40 days, while enterprise deals often exceed 180 days. The key is comparing against your specific segment—a 60-day cycle is excellent for enterprise but concerning for transactional SMB sales.

How can I reduce my sales cycle?

Focus on three areas: 1) Better lead qualification to avoid wasting time on poor-fit prospects, 2) Streamline your sales stages by removing unnecessary steps, and 3) Address common objections earlier with better sales enablement content. Companies that implement these changes typically see 20-40% cycle reduction.

Why does sales cycle length matter?

Shorter cycles mean more revenue capacity—if you close deals in 60 days instead of 90, you can work 50% more deals annually. It also reduces CAC (customer acquisition cost), improves forecast accuracy, and increases rep productivity. A 30% cycle reduction often translates to 15-25% revenue growth.

How do I calculate sales cycle by stage?

Track the average days spent in each stage: Lead → Qualified → Demo → Proposal → Negotiation → Closed. This reveals bottlenecks—if prospects spend 25 days in 'Proposal' but only 5 days in other stages, that's where to focus optimization efforts.

What's the difference between sales cycle and sales velocity?

Sales cycle measures time only (days to close). Sales velocity measures revenue throughput: (Number of Opportunities × Deal Value × Win Rate) ÷ Sales Cycle Length. Velocity tells you how much revenue flows through your pipeline per day—a more complete performance metric.

Sales Cycle Calculator

Calculate your sales cycle length in seconds. Compare against 500+ companies by industry. Get AI-powered recommendations to close deals faster.

Enter Your Values

Total Days to Close All Deals*

days

Sum of days from first contact to close for all deals

Number of Closed Deals*

deals

Total deals closed in the same period (won deals only)

Average Deal Size

Your typical contract value for revenue impact calculations

Annual Deals Target

deals

How many deals you aim to close per year

Formula

Sales Cycle Length = Total Days to Close All Deals ÷ Number of Closed Deals

This gives you the average number of days from first prospect contact to signed contract. Lower is generally better, but must be balanced against deal quality and size.

Average Sales Cycle84

84 days is typical for mid-market SaaS (84 day average).

Sales Cycle (Days)84 days

Sales Cycle (Weeks)12.0 weeks

vs SaaS Benchmark (84 days)+0%

Deals Analyzed10

Theoretical Annual Capacity2 deals/rep

Revenue Impact (-20% Cycle)$15,000

Annual Revenue Capacity/Rep$30,000

Reps Needed for Annual Target34 reps

Days Saved (15% Reduction)13 days

Days Saved (30% Reduction)25 days

Sales Cycle Benchmarks by Industry

E-commerce B2B14-21 days — fast transactional sales

0 – 21

SMB/Transactional30-40 days — quick decision cycles

21 – 45

Professional Services60-90 days — relationship-based

45 – 100

SaaS (Mid-Market)84 days average — multi-stakeholder

60 – 120

Enterprise Software180+ days — complex procurement

> 120

Source: Industry benchmarks 2025

How to Calculate Sales Cycle Length

Sum the total days from first contact to close for all your deals
Count the number of deals closed in that period
Enter your average deal size for revenue impact analysis
Add your annual deals target to see capacity requirements
View your sales cycle with industry benchmarks
Get AI recommendations to reduce your cycle time

Sales Cycle Benchmarks by Industry

84 days average

SaaS (Mid-Market)

180+ days average

Enterprise Software

30-40 days average

SMB/Transactional

60-90 days average

Professional Services

14-21 days average

E-commerce B2B

25-30% below industry avg

Top Performers

Source: Industry benchmarks 2025

Sales Cycle Calculator

Sales Cycle Benchmarks by Industry

How to Calculate Sales Cycle Length

Sales Cycle Benchmarks by Industry

Frequently Asked Questions

What is a sales cycle and how do you calculate it?

What is a good sales cycle length?

How can I reduce my sales cycle?

Why does sales cycle length matter?

How do I calculate sales cycle by stage?

What's the difference between sales cycle and sales velocity?