Skip to main content

Business Sales Growth

March 21, 2017
Read Time: 0 min

What it is, how it’s calculated and why it’s important to small business owners.


Sales Growth = ((Current Annual Total Sales – Previous Annual Total Sales) ÷ Previous Annual Total Sales) × 100


Sales Growth, also known as Revenue Growth, is the percentage by which the average sales volume of a company’s products or services has grown in the last year. Sales Growth is first calculated by subtracting the total sales for the previous calendar year from the total sales for the current calendar year. The resulting number is then divided by the total sales from the previous calendar year and then multiplied by 100 to form a percentage.

Try our free cash flow solution, CashSage.

How it’s Used

Similar to other growth metrics, Sales Growth is a key indicator of a company’s performance and financial health. A positive Sales Growth indicates that overall sales are increasing for a company, while a negative Sales Growth indicates that overall sales are decreasing.

Ways to Improve Sales Growth

A great way to improve Sales Growth is through marketing campaigns. Once a company determines the best platform to reach potential consumers (social media, email, television, etc.), they should try to release engaging content on a weekly or monthly basis. Another useful marketing technique could be to establish a referral reward program. Companies can offer promotions to customers who successfully refer them new business.

To benchmark Sales Growth against others in your industry and learn how to generate more cash for your business, try our free cash flow solution, CashSage.

About the Author


Raleigh, N.C.-based Sageworks, a leading provider of lending, credit risk, and portfolio risk software that enables banks and credit unions to efficiently grow and improve the borrower experience, was founded in 1998. Using its platform, Sageworks analyzed over 11.5 million loans, aggregated the corresponding loan data, and created the largest

Full Bio

About Abrigo

Abrigo enables U.S. financial institutions to support their communities through technology that fights financial crime, grows loans and deposits, and optimizes risk. Abrigo's platform centralizes the institution's data, creates a digital user experience, ensures compliance, and delivers efficiency for scale and profitable growth.

Make Big Things Happen.