Definition
Average sales price is the average booked value per closed-won deal over a period (often ACV for SaaS).
Formula
ASP = booked value / number of closed-won deals
Example
If $1.5M is booked across 30 deals, ASP is $50k.
How to use it
- Use ASP with win rate to understand whether growth comes from bigger deals or more deals.
- Segment ASP by plan and customer size to avoid mix-shift confusion.
- Track ASP with sales cycle length to see trade-offs in deal size.
Common mistakes
- Mixing contract terms (monthly vs annual) without normalization.
- Comparing ASP across segments with different pricing models.
Why this matters
This term matters because small changes compound in SaaS metrics. Use consistent definitions by cohort and segment so you can diagnose retention, payback, and growth quality.
Practical checklist
- Write a 1-line definition for "Average Sales Price (ASP)" that your team will use consistently.
- Keep the time window consistent (weekly/monthly/quarterly) when comparing trends.
- Segment results (channel/plan/cohort) before drawing big conclusions from blended averages.
- Sanity-check with a related calculator from the same category on MetricKit.
- Read the related guide (e.g., Sales ops metrics hub: quota, pipeline, win rate, and capacity planning) for context and common pitfalls.
Where to use this on MetricKit
Calculators
- ARR vs MRR Calculator: Convert ARR to MRR (and MRR to ARR) and understand the ARR vs MRR relationship.
- ARR Growth Rate Calculator: Calculate ARR growth over a period and convert it to CMGR and annualized growth (CAGR).
- ARR Valuation Calculator: Estimate a SaaS valuation from ARR and a revenue multiple (ARR valuation).
- ARR Valuation Sensitivity Calculator: Estimate valuation sensitivity to ARR and revenue multiple assumptions (simple 3x3 grid).
- NRR Calculator: Calculate Net Revenue Retention (NRR) from starting MRR and revenue movements.
Guides
- Sales ops metrics hub: quota, pipeline, win rate, and capacity planning: A practical hub for sales ops planning: quota attainment, pipeline coverage, required pipeline, sales capacity with ramp, and OTE math.