Time to Close: Measuring the Speed of Your Sales Engine

Time to Close: Measuring the Speed of Your Sales Engine

Speed is leverage.
For scale-ups, Time to Close — the average duration between first qualified contact and signed deal — reveals how efficiently your sales motion converts opportunity into revenue.

It’s not just about speed for its own sake; it’s about predictability. A shorter, more consistent sales cycle means faster payback, smoother cash flow, and greater confidence in scaling your GTM investments.

At a Glance

Definition:
Time to Close = Average number of days from Opportunity Creation to Deal Close (Won)

Ideal Range (SaaS):

• SMB: 15–45 days
• Mid-Market: 45–90 days
• Enterprise: 90–180 days

Recommended Playbook: Revenue Operations Playbook

1. Why Time to Close matters

Your sales velocity defines your company’s growth rhythm.
Even if your win rate and deal size are strong, a long or unpredictable sales cycle can throttle revenue momentum.

Time to Close directly affects:

• Cash flow and CAC Payback: Faster closes accelerate return on spend.
• Forecast reliability: Consistency creates investor confidence.
• Rep productivity: Shorter cycles mean more deals per rep.
• Market competitiveness: Customers move faster than ever — speed wins.

2. How to calculate it

Time to Close = Sum of Days from Opportunity Open → Closed-Won ÷ Number of Deals Won

Example:
If your sales team closed 10 deals last quarter, and each took 60, 70, 75, 90, 50, 65, 55, 80, 85, and 100 days:

Total = 730 days ÷ 10 = 73 days average Time to Close

3. Benchmarks by stage and motion

Publicly listed SaaS companies like HubSpot or Asana typically operate around 60–90 days for mid-market sales — fast enough to sustain quarterly predictability.

4. Time to Close and sales efficiency

Together, they define sales velocity — how quickly your GTM motion turns pipeline into predictable ARR.

5. How to analyse your sales cycle

Break your Time to Close into distinct stages:

1. Lead to MQL — Marketing quality and ICP fit.
2. MQL to SQL — Sales readiness and response time.
3. SQL to Proposal — Discovery and value articulation.
4. Proposal to Close — Negotiation and decision process.

You’ll find most friction hides between proposal and decision — not at the top of the funnel.

6. Factors that influence Time to Close

• Deal size and complexity — Larger contracts require more stakeholders.
• Product type — Mission-critical tools take longer to evaluate.
• Buyer confidence — Low NRR or unclear ROI lengthens cycles.
• Pricing clarity — Transparent models accelerate close rates.
• Rep skill and enablement — Experience reduces unnecessary friction.

Time to Close reflects your ability to create clarity and trust, not just urgency.

7. Improving Time to Close

A. Qualify ruthlessly

Ensure only high-intent, ICP-aligned leads enter the pipeline.
Fewer, better opportunities close faster.

B. Strengthen your narrative

Clarify ROI, impact, and value early in the sales cycle.

C. Shorten approval friction

Use standard contracts and clear pricing to reduce legal bottlenecks.

D. Implement sales enablement tools

Automate proposals, demos, and follow-ups to reduce manual lag.

E. Improve handoffs

Align marketing, sales, and customer success for continuity in buyer experience.

8. The compounding effect of faster closes

Imagine your average deal closes in 90 days.
If you reduce that to 60 days, your team can close 50% more deals per rep per year, without increasing pipeline size or marketing spend.

This translates directly into:

• Higher sales efficiency
• Shorter CAC Payback
• Improved revenue predictability

Speed compounds just like growth.

9. Common pitfalls

• Measuring from lead creation instead of opportunity stage.
• Ignoring unqualified or stalled deals (creates false averages).
• Comparing across segments without adjusting for complexity.
• Focusing on speed over quality — short cycles with poor fit increase churn.

Consistency beats haste — aim for reliable velocity, not reckless speed.

10. Founder takeaways

• Benchmark Time to Close by segment, not company-wide.
• Use cycle data to guide pipeline forecasts and hiring plans.
• Train reps to reduce friction, not pressure buyers.
• Review quarterly — efficiency gains often hide in stage-level data.

Your company’s ability to close predictably defines its ability to scale responsibly.

Explore: Revenue Operations Playbook
Compare: [Sales Efficiency](/benchmarks/sales-efficiency)
Assess: GTM Readiness Diagnostic

Ready to measure your sales velocity? Take the free Founder Diagnostic.