**Sales growth percentage** evaluates a company’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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## Download Practice Workbook

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

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, let’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 ‘
**Sales Growth**’ 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.

### 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).

### 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. Let’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 Y’s:**

Let’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 Y’s**. However, It is an **array** of cells that is compulsory for the **GROWTH** function to work.

**Known X’s:**

In the above screenshot, the **independent** variables **Month No. **are **Known X’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**…**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 **July** by analyzing the data from **January** to **June**, then it will be the **New X’s**. It can be a **single cell** or an **array**.

**Constant:**

The value of ‘**b**’ 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**.

#### 3.2 Forecast Output Based on Estimation

Let’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).

**Related:** How to Calculate Growth Percentage Formula 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 X’s**array must be equal to the**known Y’s**. - The
**known Y’s**array has to be**greater than or equal to 0**. - If all the
**known X’s**,**known Y’s**or**new X’s**are not**numeric**values, Excel will show**Error**.

## 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. Follow our website **ExcelDemy** to get more articles like this.

## Further Readings

- Calculate Year over Year Percentage Change in Excel (Advanced Technique)
- How to Calculate Percentage of Sales in Excel
- How to Calculate Discount Percentage Formula in Excel
- Excel formula to calculate percentage of grand total (4 Easy Ways)
- How to Calculate Cumulative Percentage in Excel
- Calculate Variance Percentage in Excel
- How do you Calculate Percentage Increase or Decrease in Excel
- How to calculate salary increase percentage in Excel [Free Template]