Measuring sales growth is one of the key points to measuring the overall company growth. Because more sales mean more potential for higher profit. The sales growth can be calculated over 1 year, 3 years, 5 years, etc. But in this article, you will only learn to calculate the sales growth over 3 years in Excel.

## Extract Sales Amount from Dates to Years

In the following picture, I have taken some sales amounts against some dates over 3 years.

First, I will show you to group all the sales amounts for each corresponding year. For this purpose, I will use a formula having the **SUMPRODUCT** and **YEAR** functions.

Now follow the steps below:

❶ Insert the formula in cell **F5 **first.

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

❷ Then press **ENTER**.

**Formula Breakdown**

**YEAR($B$5:$B$20)**returns only the year out the dates in the range**$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$20):**Here,**E5**represents the year**2019**. Thus,**YEAR($B$5:$B$20)=E5**returns an array of**1**and**0**;**1**for the year**2019**and**0**for otherwise. So, the array of**1**and**0**is multiplied parallel with the sales amount in the range**$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)):**Here, the**SUMPRODUCT**function sums up all the sales amount in the array {63516;56804;0;0;51786;0;0;0;0;66558;0;0;0;0;64819;0}.**Output:**$303,483.

❸ Now drag down the **Fill Handle** from cell **F5 **to **F7**.

Now you will have **Net Sales** amounts against the years **2019**, **2020**, and **2021**.

So, we have got the **Net Sales** amounts against each corresponding year. Now I will use this **Year **vs **Net Sales** data table to show you calculate sales growth over 3 years in Excel.

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

### 1. Calculate Simple Sales Growth Rate over 3 Years

Here, I will show you to calculate the simple sales growth rate over 3 years in Excel.

The generic formula of the simple sales growth rate is:

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

Now follow the steps below:

❶ Insert 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**.

❷ Then press the **ENTER **button.

Now you will get 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

### 2. Calculate Compound Sales Growth Rate over 3 Years

Now I will show you to calculate the compound sales growth rate over the last 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%`

Now follow the steps below:

❶ Insert 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))**. Here, the**Year Span**is**3**. So 3 – 1 = 2.

❷ Now hit the **ENTER **button.

Now you will get the compound sales growth rate in cell **C9 **which is **57%**.

Similarly, you can calculate sales growth percentage in Excel.

**Read More: **How to Calculate Revenue Growth Rate in Excel

## Practice Section

You will get an Excel sheet like the following screenshot, at the end of the provided Excel file where you can practice all the methods discussed in this article.

**Download Practice Workbook**

You can download the Excel file from the following link and practice along with it.

## Conclusion

To sum up, we have discussed 2 ways to calculate sales growth over 3 years in Excel. And don’t hesitate to ask any questions in the comment section below. We will try to respond to all the relevant queries asap.

## 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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