What is the XCV Definition in Sales?

What is the XCV Definition in Sales?

The XCV definition in sales most commonly refers to Expected Close Value. XCV represents the estimated revenue a sales opportunity is expected to generate, based on its deal value and the probability of closing.

Sales teams use XCV to forecast revenue more accurately and prioritize opportunities with the highest potential impact.

What is the purpose of XCV in sales?

The purpose of XCV is to help sales teams predict future revenue and make data-driven decisions.

Here are the main purposes of XCV in sales:

• To estimate realistic revenue from open deals
• Improve the sales forecasting accuracy
• To prioritize high-value and high-probability opportunities
• To support pipeline analysis and planning
• Align sales strategy with revenue goals

Once you start using XCV, you’ll gain better visibility into expected outcomes rather than relying only on total deal value.

How is XCV calculated in sales?

You have to calculate XCV by multiplying the deal value by the probability of closing.

Here is the most common XCV calculation method:

Deal value × Closing probability (%)

For example, if a deal is worth $10,000 and has a 60% chance of closing, the XCV would be $6,000.

This approach will help your sales team to focus on weighted revenue instead of optimistic projections.