Pipeline Coverage, Working Back From the Target

Works backward from a revenue target to the qualified opportunities and total pipeline value required at a given conversion rate. Inputs are the new revenue target, average deal size, and pipeline conversion rate.

By Devon Coombs, CPA, MBA · Teaching Professor of Finance, Santa Clara University · Reviewed August 2026

From the author: Devon Coombs, CPA, MBA teaches finance at Santa Clara University and works with corporate teams on practical AI.

AI training for finance teams · Consulting · The 10 Laws of Finance

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Pipeline Coverage, Working Back From the Target

New revenue target

Average deal size

Pipeline conversion rate

Opportunities needed

qualified opps to generate

Pipeline to build

$4.0M

target ÷ conversion

Value / opportunity

$12,500

deal × conversion

Deals to win

target ÷ deal size

Coverage ratio

4.0×

pipeline ÷ target

Working backward from the revenue target sets the opportunity volume, which in turn sizes marketing spend and SDR headcount. Each opportunity is worth its deal size times the odds it closes.

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This calculator comes from the free Entrepreneurial Finance course, where the concept is taught with readings, worked examples, and practice questions.

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Built by Devon Coombs, CPA, MBA, Teaching Professor of Finance at Santa Clara University.