Sales Growth Rate Calculator

This is an online sales growth rate calculator.

What is Sales Growth?

Sales Growth Rate (also known as Compound Annual Growth) calculator is a useful tool when determining an annual sales growth rate on product or service sales whose value has fluctuated widely from one period to the next.

How to use the Sales Growth Rate Calculator?

To use the calculator, begin by entering the value of your sales today, or its present value, into the “ending value” field. In the field for “beginning value,” enter the initial value of sales. Finally, enter the number of years or periods.

Example of calculating Sales Growth Rate

Over the course of 8 years your sales grew from $750,000 to $2,500,000, its compound annual growth rate, or its overall growth rate, is 16.24%.

CAGR essentially average out the progress of your sales over a period of time, providing a clearer picture of your annual growth. However, although your sales started at $750,000 and ended with $$2,500,000, its growth in any one year may have been quite a bit higher or even negative (if the sales ever dropped over that time).

Consequently, the CAGR figure may give the impression that the investment has produced a stable return throughout its life, even if the sales/investment was extremely volatile, fluctuating a great deal from year to year.