Sales growth percentage evaluates a companyâ€™s capability to earn revenue from sales over a specific time period. Nowadays, Microsoft Excel is a very useful tool to calculate the sales growth rate of any business with just a few clicks. This article will show you some easy ways to calculate the sales growth percentage in Excel.

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## How to Calculate Sales Growth Percentage in Excel: 3 Easy Approaches

In this tutorial, we will learn 3 easy approaches to calculate the *sales growth percentage* in Excel. We will explain each step in the methods with screenshots so that you can understand them easily. So, without further delay, letâ€™s begin.

### 1. Calculate Sales Growth Percentage with Basic Formula

In this approach, we will use the basic formula to calculate the *sales growth rate* in Excel. The basic formula is below:

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

In order to apply this formula, we will use the dataset (**B4:D10**) below that contains the serial no. of months (**B4:B10**), **Month Names** (**C5:C10**) and **Total Sales** (**D5:D10**). However, the steps to find the **growth rate** of the **Sales** are below.

**Steps:**

- First of all, select a new column (
**E4:E10**) where you want to keep the**growth rate**values. - Consequently, we typed â€˜
**Sales Growth**â€™ as the heading of the new column.

- Then, select the
**second**cell (**E6**) in the new column. - Here, we are selecting the
**second**cell because we do not have any**growth rate**for the**first**period of the interval. - Therefore, to calculate the
*Sales Growth Percentage,*enter the following**growth rate**formula in cell**E6**:

`=(D6-D5)/D5`

- After that, press the
**Enter**key. - As a result, you will get the output in cell
**E6**.

- Now, to get the result in
**percentage**format, first, select the cell that contains the result (**E6**). - Afterward, go to the
**Home**tab and find the**Number**group. - Next, click on the
**%**symbol.

- Eventually, you will get your desired
**Sales Growth Percentage**.

- Now, drag the
**Fill Handle**(the small**Plus**(**+**) sign on the right-bottom corner of the cell) through the whole column. - Or, double-click on it.

- Thus, the other cells of the column will be automatically filled with the formula in
*ascending*order of**cell references**(see screenshot).

- Like, cell
**E9**will have the formula:

`=(D9-D8)/D8`

- Similarly, the formula in cell
**E10**will be:

`=(D10-D9)/D9`

- And so on.
- In this way, we get the expected
*Sales Growth Percentage*after each month.

**Note:**

Some of you may get the *Sales Growth* rates directly in the *percentage* format. But in most cases, you will get it in *decimal* format. In this case, just follow the steps shown previously to convert it into the *percentage* format.

**Read More: **How to Calculate Growth Percentage with Formula in Excel

### 2. Determine Annual Sales Growth Rate in Excel

Suppose, we have a dataset (**B4:C10**) in Excel containing some *Years* and the *Total Sales* in those years. Now, we want to determine the Annual Growth Rate of the *Sales* in cell **C12**. The steps to do so are below.

**Steps:**

- In the beginning, activate cell
**C12**. - Next, to find the
*Annual Growth Rate*, insert the following formula in the cell:

`=((C10-C5)^(1/5))-1`

- After that, hit the
**Enter**button. - Thus, you will get the output (see screenshot).
- But, we can see that the result is in
**decimal**format.

- Eventually, to get the result in
**percentage**format, select cell**C12**> go to the**Home**tab > find the**Number**group > click on the**%**symbol.

- In this way, you will get your desired result in
**percentage**format (see screenshot).

Similarly, you can calculate the monthly growth rate in Excel.

**Read More: **How to Calculate Sales Growth over 3 Years in Excel

### 3. Use Excel GROWTH Function to Calculate Sales Growth Percentage

Excel provides a built-in function called **GROWTH** which analyzes a set of given data and can predict the output data based on the estimation. Letâ€™s discuss it in detail for the following dataset.

The formula that the **GROWTH** function uses is :

`Y=b*m^X`

**The GROWTH function** takes **four** arguments:

**Known Yâ€™s:**

Letâ€™s see the figure above. Here, for **Month No.** increasing from **1** to **6**, we have **6** different **Total Sales**. For each **Month No.**, we have a **Total Sales** amount. So, the **Month No.s** are the **independent** variables and the **Total Sales** depend on them. Hence, the **Total Sales** are the **dependent** variables or **Known Yâ€™s**. However, It is an **array** of cells that is compulsory for the **GROWTH** function to work.

**Known Xâ€™s:**

In the above screenshot, the **independent** variables **Month No. **are **Known Xâ€™s**. It is also an **array** of cells. But, it is not a compulsory part of the **GROWTH** function. If we do not provide it, **Excel** will assume them as **1**â€¦**2**â€¦**3**â€¦ up to the total number of **Known Yâ€™s**.

**New Xâ€™s:**

**New Xâ€™s** are the **independent** variables for which we want to predict the **Yâ€™s**. Like, if we want to predict the estimated sales of **July** by analyzing the data from **January** to **June**, then it will be the **New Xâ€™s**. It can be a **single cell** or an **array**.

**Constant:**

The value of â€˜**b**â€™ in the formula of the **Growth** function 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. On the other hand, if it is **FALSE**, Excel sets it as **1**. When the parameter is missing, by default **Excel** assumes **TRUE**.

#### 3.1 To Find out Sales Growth

Assuming, we have a dataset (**B4:E10**) in Excel. It contains the **Sales in 2015**, the **Sales in 2016** and their corresponding **Months** (from **January** to **June**). Here, we will use the **GROWTH** function to find out the **Growth** of the **Sales** values in the **E5:E10** range. See the following steps to do so.

**Steps:**

- In the first place, go to cell
**E5**. - Afterward, to calculate the
**Sales Growth**, enter the formula below:

`=GROWTH(D5:D10,C5:C10)`

- Then. hit
**Enter**. - Finally, you will get all the
**Sales Growth**values in the range**E5:E10**.

**Read More: **Growth Over Last Year Formula in Excel

#### 3.2 Forecast Output Based on Estimation

Letâ€™s say, we have a dataset (**B4:D10**) below containing some **Years**, their **Serial No.** and the values of **Total Sales** in those years. We can see that the **Total Sales** value in the **Year 2015** is missing. Now, we will forecast the **Total Sales** in **2015** by estimating the data from the **Year 2010 to 2014**. We will use the **GROWTH** function for the estimation. The steps are below.

**Steps:**

- First, select cell
**D10**with a**left-click**on it. - Secondly, insert the following formula to predict the
**Total Sales**in**2015**:

`=GROWTH(D5:D9,C5:C9,C10)`

- Thirdly, press the
**Enter**button on the keyboard. - In this way, you can estimate the
**Total Sales**in**2015**(see screenshot).

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

## Things to Remember

While using the **GROWTH** function in Excel, we should always remember some important points. They are:

- In the
**GROWTH**function, the length of the**known Xâ€™s**array must be equal to the**known Yâ€™s**. - The
**known Yâ€™s**array has to be**greater than or equal to 0**. - If all the
**known Xâ€™s**,**known Yâ€™s**or**new Xâ€™s**are not**numeric**values, Excel will show**Error**.

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## Conclusion

I hope the above tutorial will be helpful for you to calculate the sales growth percentage in Excel. Download the practice workbook and give it a try. Let us know your feedback in the comment section.