Sales velocity and inventory runway calculator

Why velocity is the number to watch

A project's economics are set by two things: the price per square foot and how fast the inventory sells at that price. Velocity is the second. It decides when the construction finance is repaid, how long the sales and marketing overhead runs, and whether the remaining inventory is sold into a rising or a falling market. A project selling 2% of its units a month takes four years to clear; at 4% it takes two.

The formulas

• Velocity = units sold ÷ months since launch
• Absorption rate = velocity ÷ total units
• Months to sell out = unsold units ÷ velocity
• Revenue run-rate = velocity × average ticket
• Required velocity = unsold units ÷ months to target

Reading the result honestly

Launch inflation

Most projects sell 20–40% of inventory in the launch quarter, often to investors and channel partners' standing buyers. The average since launch hides the slowdown that follows. Re-run the calculator with only the last three months of sales to see the pace you are actually at.

Inventory mix

Velocity is rarely uniform across configurations. If the 2 BHKs are gone and the 3 BHKs are not moving, project-level velocity understates the problem. Run the numbers per configuration when the project has more than one.

Closing the gap

When required velocity exceeds current velocity, the options are price, product, leads or conversion. Price cuts are permanent and visible to existing buyers; product changes are slow. More leads cost what the channel ROI calculator says they cost. Conversion is usually the cheapest lever: the funnel benchmark shows how many bookings the existing leads would yield at industry average.

Velocity and RERA

Collections follow velocity, and withdrawals from the designated account follow completion. A project that sells fast but builds slowly accumulates cash it cannot use; the escrow calculator shows how much is actually withdrawable at the current certified completion.