What is Average Deal Size?
Also known as: Average deal value, average selling price (ASP)
Average Deal Size is the mean value of your closed-won deals in a period. It is a quick read on who you are selling to — and a core input to sales velocity and capacity planning.
What is Average Deal Size?
Sum the amount of every closed-won deal and divide by the number of those deals. A rising average usually means moving upmarket; a falling average means more small deals (or heavier discounting).
How to calculate Average Deal Size
Average Deal Size = total won deal value / number of won deals.
Watch the median alongside it — one whale can pull the average far above the typical deal.
Average Deal Size vs ACV vs TCV
Average deal size is usually the deal’s booked amount; ACV annualizes a contract; TCV is its full multi-year value. A single multi-year deal can have a large TCV but a modest ACV — do not mix them when you report "deal size."
Why it matters
It is one of the four sales-velocity inputs and the basis for capacity planning (how many deals a rep must win to hit quota). Segmenting average deal size by source or rep reveals where the high-value motion lives.