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Sales Growth Calculator

Reviewed by Abhinash J

Published: April 11, 2023

Sales growth rate is the rate at which a business grows over a certain period. Comparing sales growth over different periods helps understand the health of the organization, and take measures to course-correct.

Sales of current time period

Total sales revenue generated in the current time period.

Sales of previous time period

Total sales revenue generated in the previous time period.
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What is Sales Growth? 

The sales growth rate is a metric that helps determine an organization’s ability to generate revenue through sales operations over a particular period. 

By regularly monitoring the sales growth rates, sales managers can identify the roadblocks in their current sales process and take steps to fix those challenges. 

Additionally, when a business seeks investment from external investors, the sales growth rate becomes one of the key decision-making factors. 

How to calculate Sales Growth? 

Here’s how you can calculate sales growth: 

Sales growth = [ ( Sales of current time period - Sales of previous time period) / Sales of previous time period] * 100
Sales Growth Formula

For example, If the sales of your business for 2022 is $10,000 and that of 2021 was $7,500, the

Sales growth rate will be = [ (10000-7500)/7500] * 100 = 33.33% 

This means, the sales revenue of your business has grown by 33.33% from 2021 to 2022. 

Why does sales growth matter? 

Sales growth has a key role in your business's profitability. Hence, it is a major metric to determine your company's financial health. With a sales growth rate, VPs and sales managers can monitor the sales team’s performance and effectiveness of the current sales process and identify areas of improvement that require quick attention. 

Tips to improve your sales growth

Here are 3 tried and tested tips to improve your business: 

1. Focus on sales enablement

If your goal is to boost sales growth rate, your sales team is the driver to achieve this goal. So, make sure that you understand what motivates them and create a sales process that aligns with your goal and their needs. 

Sometimes, sales managers push the sales reps without knowing what truly matters to them. As a result, it creates unnecessary pressure on the reps; they tend to get overwhelmed and deviate from their goals. The right approach here is to ask appropriate questions to the reps, find out about their requirements and show them that they matter. 

Sales enablement programs help sales professionals understand their responsibilities better. These programs are designed with lots of sales tools and tutorials to help the reps excel in their performance. 

Organizations that have already implemented sales enablement have noticed a 49% win rate on forecasted deals, whereas organizations without active sales enablement programs have only achieved a 42.5% win rate. 

2. Switch to account-based selling

Account-based selling is a multi-channel sales model where sales professionals focus on businesses from specific high-value accounts. It starts with shortlisting high-value accounts that match the sales team’s target buyer persona and can be nurtured with personalized sales strategies. The goal of this sales approach is to earn high revenue from specific, high-value accounts. 

One of the biggest challenges for sales managers to successfully implement account-based selling is identifying the key decision-maker for each account. Some useful tricks to do that include: 

  • Using LinkedIn, Twitter, and other relevant social media platforms to identify the central decision-maker for each account.
  • Using analytics tools to match the prospects with your buyer persona and find out how they are likely to make a purchase from your brand.
  • Analyzing the purchase history of the prospects to identify their buying patterns.

3. Define your ideal customer profile and stick to it

Sales managers should clearly define the ideal customer profile for the sales reps. The reps should clearly know who they are targeting and why. 

Hence, the first step to developing a sales process is - creating an ideal buyer persona. Start with the following questions: 

  • Where do my target audiences live? 
  • What are their roles in a company? 
  • What are they struggling with? 
  • What kind of solution are they looking for? 
  • What is their budget? 

Once you find the answer to all these questions, you can easily paint a picture of your target buyers and present it in front of your sales team. It will provide them a direction and help them plan the right strategies to target the right prospects. 

Final thoughts 

Sales growth rate cannot be the same for all businesses. It depends on multiple factors like the size of your business, the industry you are targeting, your sales team’s performance, and much more. However, irrespective of the industry you belong to, monitoring your sales growth regularly can provide sales managers visibility into their sales team’s progress and simplify decision-making.

Free Resource

Sales Growth Calculator

Use this Google Sheet template to calculate your customer retention rate. With this easy-to-use calculator, you'll have the power to track your retention rate and identify areas for improvement.

Frequently Asked Questions

What is a good sales growth rate?

There is no good sales growth rate. It depends on the company, industry, competitive landscape, and sales goals.

What factors affect a company’s sales growth rate?

The sales growth rate depends on market conditions, product innovation, pricing, and distribution.

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