diff --git a/apps/web/core/components/cycles/list/cycles-list-item.tsx b/apps/web/core/components/cycles/list/cycles-list-item.tsx
index 18e6d90bb..0e17743bb 100644
--- a/apps/web/core/components/cycles/list/cycles-list-item.tsx
+++ b/apps/web/core/components/cycles/list/cycles-list-item.tsx
@@ -8,7 +8,7 @@ import { Check } from "lucide-react";
 import type { TCycleGroups } from "@plane/types";
 import { CircularProgressIndicator } from "@plane/ui";
 // components
-import { generateQueryParams } from "@plane/utils";
+import { generateQueryParams, calculateCycleProgress } from "@plane/utils";
 import { ListItem } from "@/components/core/list";
 // hooks
 import { useCycle } from "@/hooks/store/use-cycle";
@@ -50,7 +50,6 @@ export const CyclesListItem: FC<TCyclesListItem> = observer((props) => {
   // computed
   // TODO: change this logic once backend fix the response
   const cycleStatus = cycleDetails.status ? (cycleDetails.status.toLocaleLowerCase() as TCycleGroups) : "draft";
-  const isCompleted = cycleStatus === "completed";
   const isActive = cycleStatus === "current";
 
   // handlers
@@ -73,20 +72,7 @@ export const CyclesListItem: FC<TCyclesListItem> = observer((props) => {
 
   const handleItemClick = cycleDetails.archived_at ? handleArchivedCycleClick : undefined;
 
-  const getCycleProgress = () => {
-    let completionPercentage =
-      ((cycleDetails.completed_issues + cycleDetails.cancelled_issues) / cycleDetails.total_issues) * 100;
-
-    if (isCompleted && !isEmpty(cycleDetails.progress_snapshot)) {
-      completionPercentage =
-        ((cycleDetails.progress_snapshot.completed_issues + cycleDetails.progress_snapshot.cancelled_issues) /
-          cycleDetails.progress_snapshot.total_issues) *
-        100;
-    }
-    return isNaN(completionPercentage) ? 0 : Math.floor(completionPercentage);
-  };
-
-  const progress = getCycleProgress();
+  const progress = calculateCycleProgress(cycleDetails);
 
   return (
     <ListItem
@@ -96,16 +82,10 @@ export const CyclesListItem: FC<TCyclesListItem> = observer((props) => {
       className={className}
       prependTitleElement={
         <CircularProgressIndicator size={30} percentage={progress} strokeWidth={3}>
-          {isCompleted ? (
-            progress === 100 ? (
-              <Check className="h-3 w-3 stroke-[2] text-custom-primary-100" />
-            ) : (
-              <span className="text-sm text-custom-primary-100">{`!`}</span>
-            )
-          ) : progress === 100 ? (
+          {progress === 100 ? (
             <Check className="h-3 w-3 stroke-[2] text-custom-primary-100" />
           ) : (
-            <span className="text-[9px] text-custom-text-300">{`${progress}%`}</span>
+            <span className="text-[9px] text-custom-text-100">{`${progress}%`}</span>
           )}
         </CircularProgressIndicator>
       }
diff --git a/packages/utils/src/cycle.ts b/packages/utils/src/cycle.ts
index 133db1595..2f47f223f 100644
--- a/packages/utils/src/cycle.ts
+++ b/packages/utils/src/cycle.ts
@@ -4,7 +4,7 @@ import orderBy from "lodash/orderBy";
 import sortBy from "lodash/sortBy";
 import uniqBy from "lodash/uniqBy";
 // plane imports
-import { ICycle, TCycleFilters } from "@plane/types";
+import { ICycle, TCycleFilters, TProgressSnapshot } from "@plane/types";
 // local imports
 import { findTotalDaysInRange, generateDateArray, getDate } from "./datetime";
 import { satisfiesDateFilter } from "./filter";
@@ -191,3 +191,57 @@ export const formatActiveCycle = (args: {
     ? formatV1Data(isTypeIssue!, cycle, isBurnDown!, endDate)
     : formatV2Data(isTypeIssue!, cycle, isBurnDown!, endDate);
 };
+
+/**
+ * Calculates cycle progress percentage excluding cancelled issues from total count
+ * Formula: completed / (total - cancelled) * 100
+ * This gives accurate progress based on: pendingIssues = totalIssues - completedIssues - cancelledIssues
+ * @param cycle - Cycle data object
+ * @param estimateType - Whether to calculate based on "issues" or "points"
+ * @param includeInProgress - Whether to include started/in-progress items in completion calculation
+ * @returns Progress percentage (0-100)
+ */
+export const calculateCycleProgress = (
+  cycle: ICycle | undefined,
+  estimateType: "issues" | "points" = "issues",
+  includeInProgress: boolean = false
+): number => {
+  if (!cycle) return 0;
+
+  const progressSnapshot: TProgressSnapshot | undefined = cycle.progress_snapshot;
+  const cycleDetails = progressSnapshot && !isEmpty(progressSnapshot) ? progressSnapshot : cycle;
+
+  let completed: number;
+  let cancelled: number;
+  let total: number;
+
+  if (estimateType === "points") {
+    completed = cycleDetails.completed_estimate_points || 0;
+    cancelled = cycleDetails.cancelled_estimate_points || 0;
+    total = cycleDetails.total_estimate_points || 0;
+
+    if (includeInProgress) {
+      completed += cycleDetails.started_estimate_points || 0;
+    }
+  } else {
+    completed = cycleDetails.completed_issues || 0;
+    cancelled = cycleDetails.cancelled_issues || 0;
+    total = cycleDetails.total_issues || 0;
+
+    if (includeInProgress) {
+      completed += cycleDetails.started_issues || 0;
+    }
+  }
+
+  // Exclude cancelled issues from total (pendingIssues = total - completed - cancelled)
+  const adjustedTotal = total - cancelled;
+
+  // Handle edge cases
+  if (adjustedTotal === 0) return 0;
+  if (completed < 0 || adjustedTotal < 0) return 0;
+  if (completed > adjustedTotal) return 100;
+
+  // Calculate percentage and round
+  const percentage = (completed / adjustedTotal) * 100;
+  return Math.round(percentage);
+};