Revenue Metrics

Average Deal Size

Also: Average Selling PriceASP

The average value of a closed deal, including any one-time and first-year amounts.

Why it matters

Average deal size shapes how much you can spend to acquire, how long a sales cycle you can afford, and the team you need. It is closely related to ACV but can include one-time fees. Growing deal size is one of the cleaner ways to scale revenue efficiently.

How it is calculated

Average Deal Size = total value of closed-won deals / number of deals in a period

What good looks like

What matters is the fit between deal size and acquisition cost: bigger deals justify more acquisition investment and longer cycles. Watch the trend and the distribution, an average pulled up by a few large deals can mislead.

Related terms

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