Formula
This is a single step, not a multi-year compound rate:
Sales growth = (current sales − previous sales) / previous sales
A current period of zero is a 100% decline.
Assumptions
- The two amounts cover periods of the same length.
- Previous sales are greater than zero.
Worked example
Sales moving from $80,000.00 to $100,000.00 is growth of 25.00%.
Input definitions
- Previous period sales
- The base period. It must be greater than zero.
- Current period sales
- The later period. Zero is allowed.
Limitations
This is a planning estimate, not accounting, tax, payroll, or advertising advice. The currency control changes the symbol only.
Questions
How is this different from revenue growth?
This page is one period against the previous one. Revenue growth is the compound yearly rate across several years.
Can growth be negative?
Yes. Current sales below the previous period produce a negative percent.