In this tutorial, we will demonstrate 3 approaches to calculate the *sales growth percentage* in Excel.

### Method 1 – Using the Basic Formula

The basic formula to calculate the *sales growth rate* is:

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

Let’s apply this formula on the dataset (**B4:D10**) below.

**Steps:**

- Select a new column (
**E4:E10**) to store the**growth rate**values. - Enter ‘
**Sales Growth**’ as the heading for the new column.

- Select the
**second**cell (**E6**) in the new column (because we do not have any prior growth rate to compare against in the first cell).

- To calculate the
*Sales Growth*Percentage for February, enter the following**growth rate**formula in cell**E6**:

`=(D6-D5)/D5`

- Press
**Enter**to return the result.

- To get the result in
**percentage**format, select the cell that contains the result (**E6**). - Go to the
**Home**tab and from the**Number**group click on the**%**symbol.

We have our desired **Sales Growth Percentage**.

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

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

- For example, cell
**E9**has the formula:

`=(D9-D8)/D8`

- Similarly, the formula in cell
**E10**is:

`=(D10-D9)/D9`

- And so on.

In this way, we get the *Sales Growth Percentage* at the end of each month.

**Note:**

Some versions of Excel may return the *Sales Growth* rates directly in the *percentage* format, saving the need to convert from *decimal* format as we have done here.

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

### Method 2 – Determining Annual Sales Growth Rate

Suppose we have a dataset (**B4:C10**) containing some *Years* and the *Total Sales* in those years. Let’s determine the Annual Growth Rate of the *Sales* in cell **C12**.

**Steps:**

- In cell
**C12**enter the following formula:

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

- Press
**Enter**.

The result is in **decimal** format.

To get the result in **percentage** format:

- Select cell
**C12**. - Go to the
**Home**tab. - From the
**Number**group, click on the**%**symbol.

We have the desired result in **percentage** format.

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

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

### Method 3 – Using Excel GROWTH Function

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

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

`Y=b*m^X`

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

**Known Y’s:**

Applied to our dataset, the **Month No’s** are the **independent** variables and the **Total Sales** are the **dependent** variables or **Known Y’s**. The argument is an **array** of cells, and is mandatory for the function.

**Known X’s:**

Applied to our dataset, the **independent** variables **Month No’s **are the **Known X’s**. The argument is also an **array** of cells, and is optional. If not specified, values of **1**…**2**…**3**… up to the total number of **Known Y’s **will be assumed.

**New X’s:**

**New X’s** are the **independent** variables for which we want to predict the **Y’s**. For instance, if we want to predict the estimated sales of **July** by analyzing the data from **January** to **June**, then the estimated sales of **July** will be the **New X’s**. This argument can be a **single cell** or an **array**.

**Constant:**

The value of ‘**b**’ in the formula of the **Growth** function depends on this constant. The value can be either **TRUE** or **FALSE**. If it is **TRUE**, **Excel** calculates the value of **b** and then uses it. If **FALSE**, Excel sets the value to **1**. When the parameter is missing, by default **Excel** assumes **TRUE**.

#### 3.1 – Calculating Sales Growth

Suppose we have a dataset (**B4:E10**) that contains the **Sales in 2015**, the **Sales in 2016** and their corresponding **Months** (from **January** to **June**). We will use the **GROWTH** function to find out the **Growth** of the **Sales** values in the **E5:E10** range.

**Steps:**

- In cell
**E5**, enter the formula below:

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

- Press
**Enter**.

The **Sales Growth** values are returned in the range **E5:E10**.

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

#### 3.2 – Forecasting Output Based on Estimation

Suppose we have the dataset (**B4:D10**) below containing some **Years**, their **Serial No.** and the values of **Total Sales** in those years. The **Total Sales** value in the **Year 2015** is missing.

Let’s forecast the **Total Sales** in **2015** by estimating the data from the **Year 2010 to 2014** using the **GROWTH** function.

**Steps:**

- In cell
**D10**, enter the following formula to predict the**Total Sales**in**2015**:

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

- Press
**Enter**.

An estimate for the **Total Sales** in **2015** is returned.

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

## Things to Remember

When using the **GROWTH** function:

- The length of the
**known X’s**array must be equal to that of 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 return an**Error**.

**Download Practice Workbook**

## Related Articles

- How to Calculate Dividend Growth Rate in Excel
- How to Use the Exponential Growth Formula in Excel
- Growth Formula in Excel with Negative Numbers
- How to Calculate Year over Year Growth with Formula in Excel

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