Definition
Time to close is the elapsed time from opportunity creation (or first touch) to closed-won or closed-lost.
How to use it
- Measure time-to-close by stage and segment to find the true bottleneck.
- Longer time-to-close increases cash needs and delays payback in practice.
Measured as
Measure Time to Close on the same customer segment, time window, and revenue basis each time you review it.
Operator takeaway
- Measure time-to-close by stage and segment to find the true bottleneck.
- Longer time-to-close increases cash needs and delays payback in practice.
- Keep Time to Close consistent by cohort, segment, and period before you use it as a decision signal in planning or reporting.
- Interpret the metric alongside retention, margin, or payback so one ratio does not hide the real operating trade-off.
Next decision
- Read Pipeline coverage and sales cycle math: set realistic targets (and avoid sandbagging) if the decision depends on interpretation, policy, or trade-offs beyond the raw formula.
- Decide whether Time to Close is a growth, retention, or efficiency signal before you set targets around it.
Where to use this on MetricKit
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.
- Cash runway: how to estimate burn, break-even, and survival time: A practical guide to runway: net burn, gross profit, break-even revenue, and how to avoid common cash planning mistakes.