Lead velocity rate (LVR)
Leading indicator - predicts revenue 4-6mo out.
- Formula
- (This-month qualified leads - last-month) / last-month
- Unit
- %/mo
- Models
- SaaS
| All | Target ~10% MoM growth in qualified leads at $1M ARR (Jason Lemkin / EchoSign). MRR growth follows LVR by approximately 4–6 months. | Jason Lemkin / SaaStr |
What it is
Lead velocity rate (LVR) measures the month-over-month percentage growth in the number of qualified leads. It is a leading indicator of future revenue, since qualified lead volume today predicts pipeline and bookings several months ahead.
How to calculate it
Subtract last month's qualified lead count from this month's, then divide by last month's count and multiply by 100. For example, if you had 100 qualified leads last month and 110 this month, LVR is 10%. The definition of "qualified" must be held constant — changing the qualification criteria invalidates the trend.
Why it matters
LVR is valuable precisely because it is a leading, not lagging, metric. Revenue reflects decisions made months ago; LVR tells you whether the funnel is compounding or shrinking today. For early-stage B2B SaaS, consistent double-digit LVR is a strong signal that the go-to-market motion is working before the revenue line makes it obvious.
Benchmarks & pitfalls
Jason Lemkin, drawing on EchoSign experience, suggests targeting approximately 10% month-over-month qualified lead growth at $1M ARR — this is a directional heuristic from a single practitioner, not a cross-company study. The critical interpretive note from Lemkin is the lag: MRR growth tends to follow LVR by approximately four to six months. Teams that chase LVR without stabilizing their qualification criteria will find the metric noisy; a spike caused by a qualification threshold change is not true demand growth.