How to calculate lead velocity rate (LVR)
Lead velocity rate (LVR), popularized by Jason Lemkin, is prized because it is a leading indicator you can measure in real time. Today's qualified-lead growth predicts tomorrow's revenue growth, long before deals close.
Unlike revenue, which is a lagging result, LVR tells you now whether the top of the funnel is expanding fast enough to hit future targets. A flat or falling LVR is an early warning that revenue will stall in a couple of quarters.
- MoM lead growth % The formula
- Leading indicator Predicts future revenue
- Real time Measurable now
Short answer
Lead velocity rate is the month-over-month percentage growth in qualified leads. Subtract last month's qualified leads from this month's, divide by last month's, and multiply by 100. If you had 200 qualified leads last month and 230 this month, LVR is 15 percent. It is a real-time leading indicator of future revenue.
Step by step
Define a qualified lead
Fix a consistent definition of a qualified lead so month-to-month comparisons are valid. Changing the definition mid-stream breaks the metric.
Count qualified leads each month
Count the qualified leads generated this month and last month using the same definition.
Compute the growth rate
LVR equals (this month's qualified leads minus last month's) divided by last month's, times 100. It is a percentage growth rate.
Track the trend
Plot LVR month over month. Sustained positive LVR predicts revenue growth; a decline warns of a future revenue slowdown while you still have time to act.
Worked example
Last month you generated 250 qualified leads; this month, 300. LVR = (300 minus 250) / 250 = 50 / 250 = 20 percent month over month.
If you sustain 15 to 20 percent monthly LVR, your qualified-lead volume roughly doubles every four to five months, which foreshadows a similar acceleration in revenue once those leads work through the cycle. A drop to 2 percent LVR would predict a revenue plateau ahead.
How Ardovo handles it
Ardovo tracks LVR in real time from live lead data, so you see the leading signal without waiting for revenue to confirm it. Rook alerts you when LVR decelerates, giving you a quarter or two of lead time to fix demand generation.
Frequently asked questions
What is the lead velocity rate formula?
This month's qualified leads minus last month's, divided by last month's, times 100. It expresses the month-over-month percentage growth in qualified leads, a real-time leading indicator of revenue.
Why is lead velocity rate a leading indicator?
Because qualified leads generated today convert to revenue over the coming months. Growth in leads now foreshadows growth in revenue later, so LVR warns of future slowdowns before they show up in bookings.
What is a good lead velocity rate?
There is no fixed benchmark; it depends on your growth targets. Fast-growing companies often sustain double-digit monthly LVR. What matters is that LVR growth keeps pace with your revenue growth goals.