1. What is Sales Growth Rate?

The Sales Growth Rate measures the percentage increase (or decrease) in sales between two periods. It's a key performance indicator that shows how quickly a company's sales revenue is growing or shrinking over time.

2. How Does the Calculator Work?

The calculator uses the growth rate formula:

Where:

• \( Current \) — Current period sales (currency)
• \( Base \) — Base period sales (currency)

Explanation: The formula calculates the percentage change in sales from the base period to the current period.

3. Importance of Growth Rate Calculation

Details: Tracking sales growth helps businesses evaluate performance, set targets, make strategic decisions, and compare performance against industry benchmarks.

4. Using the Calculator

Tips: Enter both current and base period sales in the same currency. The base period value must be greater than zero for calculation.

5. Frequently Asked Questions (FAQ)

Q1: What's considered a good growth rate?
A: This varies by industry, but generally 10-25% annual growth is considered strong for established businesses, while startups may aim for higher rates.

Q2: Can the growth rate be negative?
A: Yes, negative growth indicates declining sales compared to the base 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 CAGR?
A: This calculates simple growth between two periods, while CAGR (Compound Annual Growth Rate) measures smoothed annual growth over multiple periods.

Q5: Should I adjust for inflation?
A: For long-term comparisons, using inflation-adjusted (real) sales figures provides more accurate growth measurement.