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Sales Growth Rate Calculator

Formula

The formula to calculate the sales growth rate is:

$\text{SGP} = \left(\frac{\text{CP} - \text{PP}}{\text{PP}}\right) \times 100$

Where:

SGP is the sales growth percentage (%)
CP is the current period sales ($)
PP is the prior period sales ($)

Sales Growth Definition

Sales growth is a measure of the rate of increase or decrease in sales displayed as a percentage of the total prior sales compared to the current sales. This sales growth rate is normally displayed as a percentage, but it can also be displayed as a simple absolute increase, which is calculated by subtracting the prior sales from the current sales.

Example Problem

Let's assume the following:

Current Period Sales (CP): $120,000
Prior Period Sales (PP): $100,000

Step 1: Calculate the sales growth percentage:

$\text{SGP} = \left(\frac{120,000 - 100,000}{100,000}\right) \times 100 = 20\%$

Therefore, the sales growth percentage is 20%.