Business Growth Percentage Calculator
To calculate the business growth percentage, subtract the previous period’s performance from the current period’s performance. Divide the result by the previous period’s performance and multiply by 100 to express the growth as a percentage.
The Business Growth Percentage Calculator is a simple tool to calculate the percentage growth of a business over a specific period. It helps measure the increase or decrease in sales, revenue, or other business metrics by comparing current performance to past performance.
Formula:
The formula to calculate business growth percentage is:
SGP = (CP – PP) / PP * 100
Where:
- SGP is the Sales Growth Percentage,
- CP is the Current Period performance (e.g., revenue or sales),
- PP is the Previous Period performance.
This formula calculates the percentage change in business performance between two periods, helping businesses track their growth trajectory.
How to Calculate ?
- Subtract the previous period (PP) performance from the current period (CP).
- Divide the result by the previous period (PP).
- Multiply by 100 to get the percentage growth.
Solved Calculation:
Example 1:
| Calculation | Instructions |
|---|---|
| Given: CP = $150,000, PP = $100,000 | Start with the current and previous periods. |
| SGP = (150,000 – 100,000) / 100,000 × 100 | Plug the values into the formula. |
| SGP = 50,000 / 100,000 × 100 | Divide the difference by the previous period. |
| SGP = 50% | The sales growth percentage is 50%. |
Answer: The business grew by 50% in the given period.
Example 2:
| Calculation | Instructions |
|---|---|
| Given: CP = $200,000, PP = $180,000 | Start with the current and previous periods. |
| SGP = (200,000 – 180,000) / 180,000 × 100 | Plug the values into the formula. |
| SGP = 20,000 / 180,000 × 100 | Divide the difference by the previous period. |
| SGP ≈ 11.11% | The sales growth percentage is approximately 11.11%. |
Answer: The business grew by approximately 11.11% in the given period.
What is Business Growth Percentage ?
A Business Growth Percentage Calculator is an essential tool for entrepreneurs and managers who want to track and analyze their company’s growth over time. This calculator helps you determine how much your business has grown in terms of revenue, sales, or profits, providing a clear picture of your financial health.
To calculate business growth percentage, you need two key figures: the current value (like revenue from this year) and the previous value (revenue from the previous year). The formula is straightforward: subtract the old value from the new value, divide by the old value, and then multiply by 100 to get a percentage. For example, if your revenue increased from $100,000 to $120,000, the growth percentage would be 20%.
Understanding how to calculate growth percentage is vital for assessing the effectiveness of your sales strategies and overall business performance. You may also use this calculator to evaluate year-over-year (YoY) growth, which can provide insights into trends and help set future goals.
In addition to tracking revenue growth, the calculator can help with related metrics, such as sales growth percentage and monthly sales growth. This information is crucial for making informed decisions about investments, staffing, and other business operations.
If you’re looking to forecast future growth, tools like the revenue growth formula in Excel or specialized calculators can assist you in projecting sales growth based on historical data. Knowing how to calculate business growth can also inform strategic planning and help identify areas for improvement.
Final Words:
Overall, the Business Growth Percentage Calculator is an invaluable resource for anyone looking to understand and optimize their business’s financial performance.
