Quick Answer (TL;DR)
Sprint Velocity measures amount of work completed per sprint. The formula is Story points completed per sprint. Industry benchmarks: Stable velocity is the goal. Track this metric when planning development capacity.
What Is Sprint Velocity?
Amount of work completed per sprint. This is one of the core metrics in the operational metrics category and is essential for any product team serious about data-driven decision making.
Sprint Velocity measures the health and efficiency of your product infrastructure and team operations. While not a customer-facing metric, it directly impacts user experience and your team's ability to ship improvements.
Understanding sprint velocity in context --- alongside related metrics --- gives you a more complete picture than tracking it in isolation. Use it as part of a balanced metrics dashboard.
The Formula
Story points completed per sprint
How to Calculate It
Apply the formula Story points completed per sprint using data from a consistent time period. Pull the values from your analytics platform or data warehouse, compute the result, and compare against the benchmarks below.
Benchmarks
Stable velocity is the goal
Benchmarks vary significantly by industry, company stage, business model, and customer segment. Use these ranges as starting points and calibrate to your own historical data over 2-3 quarters. Your trend matters more than any absolute number --- consistent improvement is the goal.
When to Track Sprint Velocity
When planning development capacity. Specifically, prioritize this metric when:
You are building or reviewing your metrics dashboard and need operational indicators
Leadership or investors ask about operational performance
You suspect a change in product, pricing, or go-to-market strategy has affected this area
You are running experiments that could impact sprint velocity
You need a quantitative baseline before making a strategic decision
How to Improve
Automate monitoring and alerting. Do not rely on manual checks. Set up automated alerts that trigger when this metric crosses a threshold so your team can respond immediately.
Invest in infrastructure and tooling. Operational metrics improve when you invest in better CI/CD pipelines, monitoring tools, and incident response processes.
Set clear SLAs and track compliance. Define service-level agreements for this metric and hold teams accountable. What gets measured and targeted gets improved.
Common Pitfalls
Treating this as a standalone number. No metric tells the full story alone. Always analyze this metric in context alongside related metrics to get an accurate picture.
Setting thresholds too tightly or loosely. Overly sensitive alerts cause alarm fatigue while loose thresholds miss real issues. Calibrate against historical baselines and adjust as the system matures.
Measuring without acting. Tracking this metric is only valuable if you have a process for reviewing it regularly and a playbook for responding when it moves outside acceptable ranges.
Related Metrics
Time to Resolution --- average time to resolve support tickets
Deployment Frequency --- how often code is deployed to production
First Response Time --- time to first support response
Lead Time for Changes --- time from code commit to production deployment
Product Metrics Cheat Sheet --- complete reference of 100+ metrics