1. What is Sales Growth Percentage?

Sales growth percentage measures the rate at which a company's sales revenue is increasing or decreasing over a specific period. It's a key performance indicator that helps businesses track their financial progress and market performance.

2. How Does the Calculator Work?

The calculator uses the sales growth percentage formula:

Where:

• \( \text{New Sales} \) — Current period sales revenue in dollars
• \( \text{Old Sales} \) — Previous period sales revenue in dollars

Explanation: The formula calculates the percentage change in sales by comparing the difference between new and old sales relative to the old sales figure.

3. Importance of Sales Growth Calculation

Details: Sales growth percentage is crucial for business planning, investor relations, market analysis, and strategic decision-making. It helps identify trends, measure marketing effectiveness, and assess overall business health.

4. Using the Calculator

Tips: Enter both new sales and old sales in dollars. Old sales must be greater than zero. The calculator will automatically compute the growth percentage and display positive values for growth or negative values for decline.

5. Frequently Asked Questions (FAQ)

Q1: What is considered good sales growth?
A: Good sales growth varies by industry, but typically 5-10% annual growth is considered healthy for established businesses, while startups may aim for higher percentages.

Q2: Can sales growth be negative?
A: Yes, negative growth indicates declining sales. This signals the need for strategic changes in marketing, pricing, or product offerings.

Q3: What time periods should I compare?
A: Common comparisons include year-over-year (YoY), quarter-over-quarter (QoQ), or month-over-month (MoM) depending on your business cycle and reporting needs.

Q4: How does inflation affect sales growth?
A: Nominal sales growth includes inflation effects. For real growth analysis, adjust for inflation using constant dollars to measure actual volume growth.

Q5: Should I use gross or net sales?
A: Typically use gross sales before returns and allowances for growth calculations, as this reflects total customer demand and market penetration.