Sales Forecast Calculator

Previous Year's Sales ($)

Average Annual Growth Rate (%)

Calculate

Result:

 

About Sales Forecast Calculator (Formula)

The “Sales Forecast Calculator” is a tool that helps estimate future sales based on historical data and a specified growth rate. It’s a valuable tool for businesses to plan their operations, allocate resources, and set targets.

The formula used in the Sales Forecast Calculator is:

Where:

• $SF$ represents the Sales Forecast for the upcoming period.
• $AGR$ stands for Average Annual Growth Rate, which is expressed as a percentage.
• $PS$ refers to the Previous Year’s Sales, i.e., the actual sales figure from the previous period.

Here’s a breakdown of the formula:

1. $AGR$ (Average Annual Growth Rate) is the anticipated rate at which sales are expected to increase annually. For example, if the AGR is 10%, it means sales are expected to grow by an average of 10% each year.
2. AGR/100​ converts the percentage growth rate into a decimal form for the calculation.
3. 1+AGR/100 represents the multiplier that accounts for the growth. For instance, if the AGR is 10%, this multiplier would be 1+10100=1.11+10010​=1.1, indicating a 10% increase.
4. $PS$ (Previous Year’s Sales) is the actual sales figure from the previous period. It serves as the starting point for the forecast.
5. $SF$ (Sales Forecast) is the projected sales figure for the upcoming period. It’s obtained by multiplying the previous year’s sales by the growth multiplier.

This formula assumes a constant growth rate, which may not always reflect real-world scenarios. Actual sales can be influenced by various factors, such as market conditions, economic changes, and consumer behavior. Therefore, it’s important to use this tool as a starting point and consider other factors when making business decisions.