Definition
Sales cycle length is the average time from first touch to closed-won. It affects cash timing and pipeline planning.
Formula
Sales cycle length = average days from lead to close
Example
If average time to close is 62 days, cycle length is 62 days.
How to use it
- Track by segment and deal size for more accurate planning.
- Shortening the cycle improves cash flow and forecast reliability.
Common mistakes
- Mixing inbound and outbound cycles without segmentation.
- Ignoring stalled deals that inflate averages.
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 "Sales Cycle Duration" 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., Pipeline coverage and sales cycle math: set realistic targets (and avoid sandbagging)) for context and common pitfalls.
Where to use this on MetricKit
Calculators
- MRR Churn Rate Calculator: Calculate MRR churn rate from churned MRR and starting MRR (with monthly-equivalent conversion).
- ARR Calculator: Estimate Annual Recurring Revenue (ARR) from customers and ARPA.
- 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).
Guides
- Pipeline coverage and sales cycle math: set realistic targets (and avoid sandbagging): A practical guide to pipeline coverage: connect quota, win rate, sales cycle length, and CAC/payback constraints to set realistic growth targets.
- 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.