What is meant by 'velocity' in the context of sprint planning?

In the context of sprint planning within Agile methodologies, 'velocity' refers specifically to the amount of work completed in a sprint. This measurement helps teams understand how much deliverable work they can achieve within their iterations by quantifying output based on completed user stories, tasks, or features. Velocity is typically measured in story points, ideal days, or similar metrics that reflect work effort.

By tracking velocity over multiple sprints, teams can establish a historical average that aids in future sprint planning. This enables more accurate forecasting of how much work can be taken on in upcoming sprints, ultimately facilitating better resource allocation and enhancing predictability in the development process.

The concept does not pertain to the speed at which code is written, the number of team members involved, or the estimating time for overall project completion, which are distinct considerations in project management and might influence velocity but do not define it directly.