Free calculator · Venture & Startup Finance
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.
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Pipeline Coverage, Working Back From the Target
Opportunities needed
80
qualified opps to generate
Pipeline to build
$4.0M
target ÷ conversion
Value / opportunity
$12,500
deal × conversion
Deals to win
20
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.
Learn the concept
This calculator comes from the free Entrepreneurial Finance course, where the concept is taught with readings, worked examples, and practice questions.
Built by Devon Coombs, CPA, MBA, Teaching Professor of Finance at Santa Clara University.