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Velocity is a capacity planning tool sometimes used in Agile software development . Velocity tracking is the act of measuring said velocity. The velocity is calculated by counting the number of units of work completed in a certain interval, the length of which is determined at the start of the project.
Team velocity is the rate at which a team delivers stories from the product backlog. If you know your velocity, you’ll have an idea about:
- How much value you’ve delivered until now (in story points and done user stories)
- When you’ll be able to deliver all user stories in the product backlog
- How many story points will you be able to deliver by a certain date.
How do you measure velocity?
Our team delivers 3 user stories. The sum of the story points equals 20. Our velocity is then 20. If, in the next iteration, our team delivers 30 story points, then our average velocity is 25, or (20 SP + 30 SP) divided by 2 iterations = 25 SP.
We need velocity to:
- Predict how much scope can be delivered by a specific date
- Predict a date for a fixed amount of scope to be delivered
- Understand our limits while defining the amount of scope we will commit for a sprint