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.
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 "Time to Close" 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
- SaaS Quick Ratio Calculator: Calculate the SaaS quick ratio: (new + expansion) / (contraction + churn).
- Rule of 40 Calculator: Calculate the Rule of 40 score: growth rate (%) + profit margin (%).
- Net New ARR Calculator: Calculate net new ARR from new, expansion, contraction, and churned ARR movements.
- ARR Waterfall Calculator: Build an ARR waterfall: starting ARR + new + expansion - contraction - churn = ending ARR.
- Burn Multiple Calculator: Calculate burn multiple: net burn / net new ARR (a growth efficiency metric).
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.