What is Average Deal Size?
The mean value of a closed deal over a period.
How to calculate it
Calculate Average Deal Size as: Total revenue / Number of deals closed. Pull the inputs from your connected data and track the trend over time in your dashboard.
Examples
Example 1
$240,000 revenue across 40 deals = $6,000 average deal size. If enterprise deals push this to $25,000, your motion is moving upmarket.
Example 2
A team closes $1M across 25 deals -> $40,000 average. After launching an enterprise tier, the next quarter's average climbs to $65,000, confirming the upmarket shift.
Why it matters
Average deal size reveals whether the team is winning larger or smaller accounts and is a core input to pricing, packaging and targeting decisions. A rising figure usually signals a successful move upmarket, while a falling one can mean discounting pressure or a shift toward smaller buyers. Pairing the mean with the median guards against a few outlier deals distorting the picture.
Benchmark context
Compare against your historical trend and target customer segment; SMB motions may sit in the hundreds to low thousands while enterprise deals run into six or seven figures. The direction matters more than the absolute value.
Common pitfalls
Skew from a few outlier deals; use median alongside mean.
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