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Velocity is a capacity planning tool used in Agile software developmentVelocity 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.

In our project we calculate our completed work using FP (Functional Points).  For example, during sprint planning we estimate that we can completed 800 FP but in actual we may complete around 780 (due to some issues, unplanned leaves etc)  So our velocity is 780 for that Sprint.  I hope it is helpful, please let me know if you have any questions.

--Subbu.

Thank U subbu

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