Pipeline Planning Tool – Introduction

This interactive pipeline calculator helps sales leaders determine exactly how much pipeline needs to be generated each quarter to achieve annual revenue targets. The model accounts for win rates, customer churn, and different sales motions across three tiers, providing a data-driven approach to pipeline planning and resource allocation.

How to Use This Tool

1. Enter your company’s 2025 revenue goal and current retained revenue
2. Adjust the pipeline multiple based on your historical win rates
3. Set your annual churn rate and conversion metrics
4. Customize the tier percentages, deal sizes, and sales cycles to match your go-to-market strategy
5. Click “Calculate Pipeline Requirements” to see quarterly pipeline targets by tier

Input Definitions

Global Inputs

• 2025 ARR Goal: Your total Annual Recurring Revenue target for end of year 2025
• Retained ARR from 2024: Revenue from existing customers expected to carry into 2025 (before churn)
• Pipeline Multiple: Coverage ratio needed based on win rate (e.g., 3.3x = ~30% win rate means you need $3.30 of pipeline for every $1 of revenue)
• Annual Churn Rate: Percentage of existing revenue expected to be lost in 2025
• Engaged Account to Opp Rate: Percentage of engaged accounts that convert to qualified opportunities
• Opp to Close Rate: Percentage of opportunities that convert to closed-won deals

Tier-Specific Inputs

• % of Target Accounts: What portion of your total addressable market falls into this tier
• 2024 Pipeline Carry Over: Existing pipeline value that will carry into 2025 for this tier
• Average Deal Size: Typical annual contract value for deals in this tier
• Sales Cycle: Total months from initial engagement to closed deal

Output Definitions

Summary Metrics

• New ARR Needed: Gap between your goal and retained revenue (what you need to sell)
• Total Pipeline Required: Sum of all pipeline needed across all tiers to hit targets
• Total Opportunities: Number of new opportunities needed across all tiers

Tier Metrics

• ARR Target: This tier’s portion of the total new revenue needed
• Total Pipeline Needed: Pipeline required for this tier (ARR target × pipeline multiple)
• New Pipeline Required: Additional pipeline to generate (total needed minus carryover)
• New Opportunities: Number of deals to create (new pipeline ÷ average deal size)

Quarterly Breakdown

• New Pipeline Needed: Pipeline to generate this quarter (including churn replacement)
• New Opportunities: Number of opportunities to create this quarter
• Cumulative Pipeline: Running total of pipeline built through each quarter

Key Assumptions

• Pipeline generation is front-loaded based on sales cycle length (longer cycles require earlier pipeline building)
• Churn is distributed evenly across quarters and requires pipeline replacement
• No expansion revenue from existing customers is included
• Win rates are consistent across quarters within each tier