How do you forecast revenue?

Revenue forecasting combines historical performance data with current pipeline analysis to predict future revenue. The most common methods:

Pipeline-Based Forecasting

Analyze your current sales pipeline by stage, apply historical win rates to each stage, and project when deals will close based on typical sales cycle length. Multiply probability-weighted deal values by expected close dates to get your forecast.

Historical Trend Analysis

Review past revenue patterns—monthly, quarterly, year-over-year growth rates. Factor in seasonality, market trends, and any major changes (new product launches, team expansion, economic conditions) to project forward.

Key Inputs

• Current pipeline value by stage
• Historical win rates
• Average deal size
• Sales cycle length
• New opportunity creation rate