How to Calculate Sales Growth Percentage in Excel (2 Easy Approaches)

Growth rate calculated in Excel.

Nowadays, Microsoft Excel is a very useful tool to calculate the sales growth percentage of any business with just a few clicks. Here I am showing some easy ways how we can achieve that.


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2 Easy Approaches to  Calculate Sales Growth Percentage in Excel

Let us look at this data set. We have the sales record of a company named Sunflower Group of the year 2020. We have the Month No, Month Name, and Total Sales of Each Month at columns A, B, and C respectively.

A dataset in Excel

Now suppose after the end of 2020, the chief of the company wants to know how much the sales rate increased after each month of 2020.

That means what the growth percentage of sales was after each month.

And side by side, he wants to have an estimate of how his business may run next year.

Here are the ways he can do that.


1. Use Formula to Calculate the Sales Growth Percentage in Excel Manually

It is pretty easy.

The sales growth percentage after each period of the interval is:

=(Total Sales in this Period - Total Sales in the previous Period)/Total Sales in the Previous Period*100

So first of all, we select a new column where we want to have the growth rate.

Then select the second cell from it.

Here we are selecting the second cell because we do not have any growth rate for the first period of interval.

I have selected a new column D, named it Sales Growth, and selected the second cell from it, cell D6.

First Cell Selected of a Column

Then we have to enter the growth rate formula. We enter D6 =(C6-C5)/C6.

Note: Here we are not multiplying by 100 because Excel’s Percentage (%) option will do it for us.

You can do it manually, but leaving it for Excel is better.

A formula written in one cell of a column

Then drag the Fill Handle (The small Plus(+) sign on the right bottom corner of the cell) through the whole column.

Or double-click it.

The other cells of the column will be automatically filled with the formula in ascending order of cell references.

Like cell C7 will have the formula =(C7-C6)/C6, C8 will have the formula =(C8-C7)/C7 and so on.

Thus we get the expected Sales Growth Percentage after each month.

A formula copied to all cells of a column by Fill Handler.a column

Note: Some of you may not get the Sales Growth rates in the beautiful percentage format like me.

You may get it in decimal values with a lot of numbers after a point and so on. Like this.

A column having numbers in General Format

If you get this, do not panic.

Select the cells and go to the Excel Toolbar.

Under the Home tab, in the Number section, you will get an option called General. Home>General. 

Click this. You will get a few drop-down options like Number, Currency, Date, Percentage, etc. Select Percentage.

And you will get the Sales Growth rates in the beautiful percentage format which I have got. 

Percentage Format in Excel


2. Use the GROWTH Function of Excel to Calculate the Sales Growth Percentage in Excel

Excel provides a built-in function called GROWTH which analyzes a set of given data and can predict and output data based on the estimation.

Let us see it in detail.

The GROWTH function takes four arguments.

  • Known Y’s
  • Known X’s
  • New X’s
  • Constant

Known Y’s:

Let us go back to the Sunflower Group Example.

Here for Month No. increasing from 1 to 12 we have 12 different Total Sales No.

For each Month No. we have a Total Sales amount. Here the Month No.s are the independent variables.

And Total Sales Number depends on them.

They are the dependent variables. The dependent variables are Known Y’s.

It is an array of cells. They are compulsory for GROWTH function to work.

Known X’s:

The independent variables Month No. are Known X’s. It is also an array of cells.

Here we provide it, but they are not compulsory to be provided.

If we do not provide these, Excel will assume them 1…2…3… up to the total number of Known Y’s.

New X’s:

New X’s are the independent variables for which we want to predict the Y’s.

Like if we want to predict the estimated sales of January 2021 by analyzing the data of 2020, then it will be the New X.

It can be a single cell or an array.  

Constant: The formula that the GROWTH function uses is : Y=b*m^X.

The value of b depends on this constant. It can be either true or false.

If it is true, Excel calculates the value of b and then uses it. If it is false, it sets it as 1. It is optional, default is true. 

Let us predict the Sales of January 2021 by seeing the data set of 2020.

We go to the A17 cell and write a formula =GROWTH(C5:C17,A5:A17,A13) 

Related: How to Calculate Growth Percentage Formula in Excel

GROWTH function in Excel


Conclusion

So using Microsoft Excel, you can find out the Sales Growth Percentage of your business very easily. It is really very useful. Do you know any other method? Let us know in the comment section.


Further Readings

Rifat Hassan

Rifat Hassan

Hello! Welcome to my profile. Here I will be posting articles related to Microsoft Excel. I am a passionate Electrical Engineer holding a Bachelor’s degree in Electrical and Electronic Engineering from Bangladesh University of Engineering and Technology. Besides academic studies, I always love to keep pace with the revolution in technology that the world is rushing towards day by day. I am diligent, career-oriented, and ready to cherish knowledge throughout my life.

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