Sales Growth Calculator
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Sales Growth Formula
The sales growth percentage (SGP) is calculated using the following formula:
\[ \text{SGP} = \left(\frac{\text{CP} - \text{PP}}{\text{PP}}\right) \times 100 \]
Where:
- SGP is the sales growth percentage (%).
- CP is the current period sales ($).
- PP is the prior period sales ($).
To calculate sales growth, subtract the prior period sales from the current period sales, divide the difference by the prior period sales, and then multiply by 100.
Sales Growth Definition
Sales growth measures the rate of increase or decrease in sales, represented as a percentage. It shows the percentage change from a prior period’s sales to the current period’s sales. While typically displayed as a percentage, the absolute increase or decrease can be found by simply subtracting prior sales from current sales.
Example Calculation
If the current period sales are $150,000 and the prior period sales were $100,000, the sales growth percentage is:
\[ \text{SGP} = \left(\frac{150,000 - 100,000}{100,000}\right) \times 100 = 50\% \]
Importance and Usage
Understanding sales growth is essential for tracking business performance over time, assessing the effectiveness of strategies, and making informed decisions about future investments or initiatives.
This calculator provides an easy way to measure sales growth rates, helping businesses and financial analysts gain insights into their revenue trends.