Sales growth over various periods is one of the key performance indicators for most companies. In this article, we will demonstrate how to calculate the sales growth over 3 years in Excel.

## Extract Annual Net Sales

Before we can calculate the sales growth over 3 years, let’s extract the Total Sales for the 3 years in question from a dataset of Sales information.

In the dataset below, we have some sales amounts against some dates over 3 years. We’ll group all the sales amounts for each corresponding year using a formula containing the **SUMPRODUCT** and **YEAR** functions. Then we’ll use these values to calculate the sales growth over the period they represent.

**Steps:**

- Enter the following formula in cell
**F5**:

`=SUMPRODUCT((YEAR($B$5:$B$20)=E5)*($C$5:$C$20))`

- Press
**ENTER**.

**Formula Breakdown**

**YEAR($B$5:$B$20)**returns only the year from the dates in the range**$B$5:$B$20**.**Output:**{2019;2019;2020;2020;2019;2021;2020;2020;2020;2019;2020;2021;2020;2020;2019;2020}

**YEAR($B$5:$B$20)=E5**returns either**TRUE**or**FALSE**. If any year in the range**$B$5:$B$20**matches with the year stored in**E5**, it returns a**TRUE**; otherwise, it returns**FALSE**.**Output:**{TRUE;TRUE;FALSE;FALSE;TRUE;FALSE;FALSE;FALSE;FALSE;TRUE;FALSE;FALSE;FALSE;FALSE;TRUE;FALSE}

**(YEAR($B$5:$B$20)=E5)*($C$5:$C$20):****E5**represents the year**2019**. Thus,**YEAR($B$5:$B$20)=E5**returns an array of**1**and**0**values;**1**for the year**2019**and**0**for otherwise. The array of**1**and**0**values is multiplied parallel with the sales amount in the range**$C$5:$C$20**.**Output:**{63516;56804;0;0;51786;0;0;0;0;66558;0;0;0;0;64819;0}

**SUMPRODUCT((YEAR($B$5:$B$20)=E5)*($C$5:$C$20)):**Sums all the sales amounts in the array {63516;56804;0;0;51786;0;0;0;0;66558;0;0;0;0;64819;0}.**Output:**$303,483.

- Drag down the
**Fill Handle**to cell**F7**.

We have **Net Sales** amounts for the years **2019**, **2020**, and **2021**.

Now we’ll use this **Year **vs **Net Sales** data table to calculate sales growth over the 3 years.

## How to Calculate Sales Growth over 3 Years in Excel: 2 Methods

### Method 1 – Calculating the Simple Sales Growth Rate over 3 Years

The generic formula for simple sales growth rate is:

`=(Third Year Sales Amount - First Year Sales Amount)/First Year Sales Amount`

**Steps:**

- Enter the following formula in cell
**C9**:

`=(C7-C5)/C5`

**Formula Breakdown**

**C7**is the**Third Year Sales Amount**.**C5**is the**First Year Sales Amount**.

Press** ENTER**.

We have the simple sales growth rate over the last 3 years in cell **C9**.

**Read More:** How to Calculate Sales Growth over 5 Years in Excel

### Method 2 – Calculating the Compound Sales Growth Rate over 3 Years

The generic formula to calculate the compound sales growth rate is:

`=((Third Year Sales Amount/First Year Sales Amount)^(1/(Year Span -1)))-100%`

**Steps:**

Enter the following formula in cell **C9**:

`=((C7/C5)^(1/2))-100%`

**Formula Breakdown**

**C7**is the**Third Year Sales Amount**.**C5**is the**First Year Sales Amount**.**(1/2)**is the**(1/(Year Span – 1))**part of the equation. The**Year Span**is 3, so 3 – 1 = 2.

Press **ENTER**.

We have the compound sales growth rate in cell **C9**.

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## Related Articles

- How to Calculate Annual Growth Rate in Excel
- How to Calculate Dividend Growth Rate in Excel
- How to Use the Exponential Growth Formula in Excel
- How to Calculate Monthly Growth Rate in Excel
- Growth Formula in Excel with Negative Numbers
- How to Calculate Year over Year Growth with Formula in Excel
- Growth Over Last Year Formula in Excel
- How to Calculate Growth Percentage with Formula in Excel

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