1. What is Monthly Sales Growth?

Monthly sales growth measures the percentage change in sales from one month to the next. It's a key performance indicator that helps businesses track their progress and make informed decisions.

2. How Does the Calculator Work?

The calculator uses the monthly growth formula:

Where:

• This Month — Current month's sales in currency
• Last Month — Previous month's sales in currency

Explanation: The formula calculates the relative change between two consecutive months, expressed as a percentage.

3. Importance of Sales Growth Calculation

Details: Tracking monthly growth helps businesses identify trends, measure the effectiveness of strategies, and make timely adjustments to operations and marketing.

4. Using the Calculator

Tips: Enter sales figures for this month and last month in currency format. Both values must be positive, and last month cannot be zero.

5. Frequently Asked Questions (FAQ)

Q1: What's considered good monthly growth?
A: This varies by industry, but generally 5-10% monthly growth is strong for established businesses, while startups may aim for higher rates.

Q2: How is negative growth interpreted?
A: Negative growth indicates declining sales. One month might not be concerning, but consecutive negative months warrant investigation.

Q3: Should I use gross or net sales?
A: Typically use gross sales before returns/discounts for growth calculations, unless tracking specific metrics.

Q4: How does seasonality affect growth?
A: Compare year-over-year monthly growth for seasonal businesses to get meaningful insights rather than consecutive months.

Q5: What other metrics complement monthly growth?
A: Customer acquisition cost, customer lifetime value, and conversion rates provide additional context to sales growth.