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Glossary · Unit Economics

Average Deal Size

By · 17 October 2026

Average deal size is the revenue from closed deals divided by the number of deals closed, which tells you what one new client is worth on the first sale.

How do you calculate average deal size?

Divide the revenue from closed deals by the number of deals that closed. In the brand-new agency offer behind one of my case studies, 24 deals closed for $168,000, which is a $7,000 average deal. Use cash actually collected on the first sale, not the contract value somebody promised, because cash collected is what pays for the ad spend.

What does average deal size change?

It sets two things: how much you can pay for a booked call, and how many sales calls it takes to close. A bigger deal can absorb a much more expensive call. Here's how that looked in one real account and in two projections from my ROI calculator:

Account or scenario Average deal Cost per booked call Result
Brand-new agency offer (actual) $7,000 $271.91 $168,000 revenue on $35,076 spend, 4.79x ROAS
ROI projection $7,500 $200 About $1.7M net over 12 months
Higher-ticket accounts (projection) $15K Upwards of $350 About $1.9M net over 12 months

The deal size also decides the sales process. A one-call close fits packages of roughly $2K to $5K, usually sold to small businesses with one or two decision makers. Above $5K, especially in mid-market or enterprise B2B, I plan for a multi-call close with 10 to 14 days between calls.

How does average deal size connect to the rest of the funnel?

Multiply your show rate by your call quality rate by your close rate by your average deal size and you get what one booked call is worth. At a 30% close rate and a $7,000 average deal, a qualified call is worth about $2,100. In the agency account above, every booked call was worth about $1,300 in revenue, which is why paying $271.91 for one was a good trade.

The lower the deal size, the less forgiving that math gets. At a $5,000 deal, one close can pay for a month of clicks. At $500, none of it survives.

FAQ

Is average deal size the same as lifetime value?

No. Average deal size is the first sale. Lifetime value includes everything a client pays you after that, through renewals and back-end offers. My ideal client is worth at least $15,000 in lifetime value, which lets me pay more for the first booked call than the first deal alone would justify.

Does a bigger deal size always mean more profit?

Not automatically. A bigger deal usually costs more per booked call and can take more than one sales call to close. In my projections, a $15K deal at upwards of $350 per call still came out ahead of a $7,500 deal at $200, because the deal absorbed the price.

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