Velocity
Velocity is the amount of work an agile team completes in one iteration, usually measured as the sum of the story point estimates of all items finished in a sprint. Teams use the average of recent sprints to plan how much work to take on next and to forecast roughly when a set of backlog items will be done.
How Velocity Works
At the end of each sprint, the team adds up the estimates of the items that are fully done, meaning they meet the team's Definition of Done. Partially finished work counts as zero, even if it is 90% complete, which encourages teams to split work into smaller pieces. Estimates are usually in story points, a relative measure of effort, though some teams simply count completed items.
Because velocity varies from sprint to sprint, teams plan with an average of several recent sprints rather than a single number. The forecast is simple division: remaining estimated work divided by average velocity gives an approximate number of sprints. Because velocity fluctuates, many teams give the forecast as a range, using their slower and faster recent sprints, rather than promising a single date.
Velocity is not part of Scrum itself. The Scrum Guide does not mention it, and it remains an optional, complementary practice that many agile teams use.
Why Velocity Matters
Velocity gives a team an evidence-based view of its own capacity. It helps avoid overcommitting in sprint planning and gives product managers a realistic basis for release forecasts and roadmap conversations. Sudden swings are a useful signal too: they often point to stories that are too large, unclear acceptance criteria or unplanned work disrupting the sprint.
The measure is easy to misuse. Velocity depends on how a particular team estimates, so comparing velocity between teams is meaningless. Treating it as a target encourages inflated estimates rather than more real output. It also measures output, not value: a team can sustain high velocity while building features nobody uses.
Velocity Example
A product team plans to launch a new reporting module. The remaining work for the launch is estimated at 80 story points. Over the last four sprints the team completed 18, 22, 19 and 21 points, an average of 20. The product manager tells stakeholders the module should be ready in about four sprints, and explains that any new requests added to the launch scope will push the date out.
Velocity vs. Capacity
Capacity is how much time the team has available in an upcoming sprint, after holidays, leave and other commitments. Velocity is what the team actually completed in past sprints. Teams often use both together: if half the team is away next sprint, they plan for roughly half their usual velocity.