Formula
Sales Growth Rate = [(Current Period Sales – Previous Period Sales) ÷ Previous Period Sales] × 100
Calculation Example
If last month’s sales were $500,000 and this month’s sales are $600,000, Growth Rate = [(600,000 – 500,000) ÷ 500,000] × 100 = 20%
Data Source
Sales reports, financial statements
Tracking Frequency
Monthly, Quarterly, Annually
Optimal Value
Consistent positive growth is ideal.
Minimum Acceptable Value
A negative growth rate indicates a decline in sales performance.
Benchmark
Depends on industry: Tech ~15-30% annually, Retail ~5-10% annually
Recommended Chart Type
Line chart (to track trends), Bar chart (to compare periods)
How It Appears in Reports
Presented in financial and sales reports to assess revenue trends.
Why Is This KPI Important?
Shows business expansion and effectiveness of sales strategies.
Typical Problems and Limitations
Can be seasonal; does not account for profitability or costs.
Actions for Poor Results
Optimize sales funnel, improve lead generation, enhance customer retention.
Related KPIs
Sales Revenue, Net Profit Margin, Marketing ROI
Real-Life Examples
An e-commerce store boosted sales growth by 25% by optimizing its online advertising strategy.
Most Common Mistakes
Focusing only on revenue growth without analyzing associated costs.
