# How Is Velocity Calculated?

At the end of an iteration, accepted stories in the current iteration move to the Done panel. The sum of the points for the accepted stories is noted for each done iteration. The team velocity is a running average of the velocity of the past N iterations, where N is 1, 2, 3, or 4 as configured by the project owner. Remaining stories are grouped into future iterations based on velocity. If Tracker cannot make iterations of exactly the same value as the velocity it will ensure that the average number of points in consecutive iterations is equal to the velocity. For instance, if the velocity is 10 and there are 8 points in the upcoming iteration but the next story in priority order is 3 effort points, Tracker will leave 8 points in the upcoming iteration and plan 12 points for the following iteration. The calculation assumes that you will start the 3-point story in the upcoming iteration but you won’t finish it until the following one. The change in the velocity over time can be tracked i