How to calculate sales increase

You calculate sales increase by subtracting your prior sales period net sales from your current net sales and dividing that number by the prior sales period net sales. You then multiply this number by 100. Use these steps to help you calculate sales growth for the company:

1. Identify the net sales

   Before starting your calculations, identify the net sales using the company's income statements. Identify the net sales from the most recent sales period and the sales period directly before it. For example, if a company wants to measure its increase from March to April, it can use the net sales from each month's income statement.

2. Find the first variable

   The first variable of the equation is the value of subtracting the most recent income statement's net sales from the prior month's net sales. For example, a company's net sales from its most recent income statement are $1,000 and the net sales from the month prior are $800. The first variable is; $1,000 - $800 = $200

3. Divide the first variable by prior net sales, then multiply by 100

   To find the second variable, divide the first variable by the prior net sales. For example, if the first variable is $600 and the prior net sales are $1,000, then you'd perform this calculation: $600 / $1,000 = 0.6

   Once you have your second variable, you can multiply it by 100. For example, if your second variable is 0.6, then the equation is: 0.6 x 100 = 60%

   Sales growth is a metric that companies can use to identify the rate at which their sales revenue increases over time. It enables them to determine their growth level by comparing current and previous growth rates to develop strategies for improvement.