1. What is Sales Growth Percentage?

The 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 (KPI) used to assess business performance and market trends.

2. How Does the Calculator Work?

The calculator uses the sales growth formula:

Where:

• \( Current\ Sales \) — Most recent sales revenue in USD
• \( Previous\ Sales \) — Sales revenue from the prior period in USD

Explanation: The formula calculates the relative change in sales between two periods, expressed as a percentage of the previous period's sales.

3. Importance of Sales Growth Calculation

Details: Tracking sales growth helps businesses evaluate performance, identify trends, make strategic decisions, and compare against industry benchmarks or competitors.

4. Using the Calculator

Tips: Enter both current and previous sales figures in USD. The previous sales value must be greater than zero for the calculation to work.

5. Frequently Asked Questions (FAQ)

Q1: What's considered good sales growth?
A: This varies by industry, but generally 10-15% annual growth is strong for mature businesses, while startups may aim for much higher rates.

Q2: Can growth percentage be negative?
A: Yes, negative growth indicates declining sales compared to the previous period.

Q3: What time periods should I compare?
A: Common comparisons are month-over-month, quarter-over-quarter, or year-over-year, depending on your analysis needs.

Q4: How does this differ from absolute sales change?
A: Absolute change shows dollar difference, while percentage change shows relative impact, which is better for comparisons across different scales.

Q5: Should I adjust for inflation?
A: For long-term comparisons, using inflation-adjusted (real) sales figures provides a clearer picture of actual growth.