What is average deal size ?

Average deal size is the mean value of closed deals over a given period, used to measure sales performance and forecast revenue.

Average deal size is calculated by dividing total revenue from closed deals by the number of deals closed. It is a key sales metric used to assess team performance, set targets, and forecast future revenue.

Example: A sales team closes 40 deals in a quarter totaling $800,000 in new ARR. The average deal size is $20,000.

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