How to Calculate Sales Growth Percentages

Present your sales growth as a single number for easy recognition and appraisal.

Sales growth percentages are a single numerical representation of the growth or loss in sales of a product or service between chosen sales periods. Used primarily to determine the profitability of a specific product, especially in light of some concrete change in handling sales during the calculation period, it’s an important managerial tool for an at-a-glance view of the success or failure of that product. The calculation is a simple one, with the single formula of: (Recent sales-Previous sales)/Previous sales * 100.

Things You'll Need

• Calculator

Instructions

1. Locate the sales figures for the two periods for which you’re trying to determine the sales growth percentage. Find the total amount of sales for the periods and make note of the two figures. For example, April 2009 sales of $100,000 followed by April 2010 sales of $125,000.

2. Take the sales figure for the most recent period and subtract the sales figure from the previous period to calculate the change in sales between the two. In the example, take the $125,000 and subtract $100,000, leaving a sales growth of $25,000.

3. Divide the change in sales between the two periods by the earlier sales figure. Multiply this by 100 to get the sales growth in percentage between the two periods. Continuing the example of a $25,000 sales growth, divide by $100,000 in sales to equal 0.25. Multiply by 100, and you get a sales growth of 25 percent over the period.

References

• The Motley Fool; Calculating Growth Rates; Selena Maranjian; May 2003

Resources

• CSG Network: Business Percentage Increase or Decrease Calculator