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KPI · Sales
Pipeline coverage ratio: formula and example.
Pipeline coverage is the ratio between the value of your open pipeline and the sales target you still need to reach in the same period. A coverage of 3 means three times as much is sitting in open deals as you still need. It tells you early in a quarter whether the target is realistic.
Pipeline coverage ratio formula
Value of open deals expected to close in the period ÷ (sales target for the period − revenue already won)
Worked example
Acme Groothandel has a fourth-quarter sales target of €600,000 and has already won €150,000. There is €1,080,000 in open deals with an expected close date in the fourth quarter. Pipeline coverage is €1,080,000 ÷ (€600,000 − €150,000) = 2.4.
Fictitious figures for Acme Groothandel, a sample wholesaler.
How to read this KPI
The higher the coverage, the more deals you can lose and still hit your target. How much coverage is enough depends on your win rate: with a 35% win rate you need roughly 1 ÷ 0.35 ≈ 2.9 times coverage. Track coverage weekly through the quarter and compare it with the same point in previous quarters.
Pitfalls with pipeline coverage ratio
- Including deals whose expected close date falls outside the period.
- Using the full target instead of the remaining target, so coverage looks too low later in the quarter.
- Relying on a fixed rule of thumb instead of your own win rate.
SQL & DAX
Calculating pipeline coverage ratio in SQL and DAX
Two examples on a fictitious data warehouse for Acme Groothandel: a PostgreSQL query and a measure for a Power BI model. Adjust table and column names to your own model.
WITH q AS (SELECT date_trunc('quarter', current_date)::date AS q_start),
target AS (
SELECT SUM(target_amount) AS amount FROM sales_targets, q
WHERE period_month >= q_start AND period_month < q_start + interval '3 months'),
won AS (
SELECT COALESCE(SUM(amount), 0) AS amount FROM deals, q
WHERE status = 'won' AND closed_at >= q_start),
pipe AS (
SELECT SUM(amount) AS amount FROM deals, q
WHERE status = 'open'
AND expected_close_date < q_start + interval '3 months')
SELECT pipe.amount AS open_pipeline,
target.amount - won.amount AS remaining_target,
ROUND(pipe.amount / NULLIF(target.amount - won.amount, 0), 2) AS coverage
FROM pipe, target, won;Pipeline Coverage =
VAR OpenPipeline = CALCULATE(SUM(Deals[Amount]), Deals[Status] = "open")
VAR Won = CALCULATE(SUM(Deals[Amount]), Deals[Status] = "won")
RETURN
DIVIDE(OpenPipeline, SUM(Targets[TargetAmount]) - Won)In ENABLE
Tracking this KPI in ENABLE
In your Power BI dashboard
Define the KPI as a measure in your Power BI model and show it in the portal, with "Last refreshed" next to it. Access profiles and optional row-level security decide who sees which figures.
Custom dashboards (pilot)
Add the KPI as a tile to a custom dashboard, compared with last year. The Dashboard Builder is a pilot and can be switched on per client.
Monthly targets
With the built-in Targets app you set a target for the KPI per month, so you see actuals and target side by side.
FAQ
Frequently asked questions
How do you calculate pipeline coverage?
Divide the value of open deals expected to close in the period by the sales target you still need to reach in that period. With €1,080,000 of open pipeline and €450,000 still to go, coverage is 2.4. Some teams use the full target instead; state which version you use.
How much pipeline coverage do you need?
The coverage you need is roughly 1 divided by your win rate by value. If you win 25% of the value in your pipeline, you need about four times coverage. There is no single rule that fits every business.
What is the difference between pipeline coverage and weighted pipeline?
Pipeline coverage compares the open pipeline with your target, while weighted pipeline estimates how much revenue the pipeline is likely to deliver. You can combine them by dividing the weighted pipeline by the remaining target. If the result is below 1, the target is probably out of reach with current opportunities.
Further reading
- KPI librarySales KPIs: formulas and examplesSales KPIs measure how healthy your pipeline is and how well it turns into revenue. The data comes from your CRM, combined with invoiced revenue from your accounting system.Read more
- ResourcesHow to build a KPI dashboard: steps and examplesA KPI dashboard is an overview of the key figures you use to steer towards your goals, such as revenue, margin, on-time delivery or absenteeism. A good KPI dashboard does not start with the software, but with the decisions it needs to support. You then choose a limited number of KPIs, define them, sketch the dashboard and only then build it.Read more
- SolutionPower BI dashboard portal: share dashboards securelyShare your Power BI dashboards securely in your own portal, with role-based access.Read more
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