Definition
Sales pipeline coverage compares pipeline value to quota or revenue targets to gauge whether enough pipeline exists to hit goals.
Formula
Pipeline coverage = qualified pipeline / quota
Example
If pipeline is $4M and quota is $1M, coverage is 4.0x.
How to use it
- Coverage targets vary by win rate and sales cycle length.
- Measure coverage by segment for accuracy.
- Add a slippage buffer if close dates often push out.
Common mistakes
- Counting unqualified deals to inflate coverage.
- Using stale close dates that hide slippage.
- Comparing coverage across teams with different stage definitions.
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 Pipeline Coverage" 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
- LTV Calculator: Estimate customer Lifetime Value (LTV) using ARPA, gross margin, and churn rate.
- LTV Sensitivity Calculator: See how gross profit LTV changes as churn and gross margin vary (simple 3x3 sensitivity).
- LTV:CAC Calculator: Compute LTV:CAC ratio and CAC payback using ARPA, gross margin, churn, and CAC.
- CAC Payback Period Calculator: Estimate how many months it takes to recover CAC (months to recover CAC) using gross profit.
- CAC Payback Sensitivity Calculator: See how CAC payback months change as ARPA and gross margin vary (simple 3x3 sensitivity).
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.