Sales Pipeline Coverage measures the ratio of the total value of opportunities in the sales pipeline to the sales quota for a given period. It indicates whether there are enough deals in progress to meet revenue targets and helps sales leaders assess the likelihood of hitting quota.
A healthy pipeline coverage suggests that the sales team has enough prospects at various stages to achieve goals, while a low coverage ratio signals the need for more prospecting or deal generation.
Sales Pipeline coverage is calculated by dividing the total value of the sales pipeline by the sales quota for the same period. This ratio shows how much potential revenue is in the pipeline relative to the target.
The target revenue for a defined time frame (monthly, quarterly, or annually).
Sum up the expected deal values for all opportunities in the pipeline within the same time frame.
This gives the pipeline coverage ratio.
A higher ratio means more coverage and potentially a greater chance to meet quota.
Sales Pipeline Coverage Ratio = Total Pipeline Value ÷ Sales Quota
Common benchmark is 3x to 5x the sales quota.
If the coverage ratio is below 3x, the team may struggle to hit targets unless win rates are exceptionally high.
Master Sales Pipeline Coverage with DiGGrowth! Just write to us at info@diggrowth.com — we’ll get back to you promptly.
It helps sales leaders forecast revenue and ensure there are enough opportunities to hit quota.
Not necessarily. An inflated pipeline with low-quality leads can waste resources; quality matters as much as volume.
Typically measured weekly or monthly to quickly spot gaps and adjust prospecting activities.