Velocity PREDICTS how much WORK can be completed by the development team within a two-week sprint. It is useful for estimating how fast and how long the team will TAKE to complete a project.  

The velocity is calculated by reviewing the work that the team has successfully completed during the previous 3 weeks. If the team completes 10 stories during the 2-week sprint and each story has 2 story points, then the team velocity is 30 points. 

Calculate Velocity 

Example to calculate velocity in Agile: 

• Sprint 1, Team committed to complete eight stories. Each story equals three-story points. The team could complete only four stories. ACHIEVED story points are 12. 
• Sprint 1, Team committed to complete 10 stories. Each story equals five story points. The team could complete only 7 stories. Achieved story points are 35. 
• Sprint 3, Team committed to complete 9 stories. Each story equals four story points. The team could complete only 7 stories. Achieved story points are 28. 

Average sprint velocity = (12+35+28)/3 = 56