Sales Forecast Calculator

Formula

To calculate the sales forecast (SF):

\[ \text{SF} = \left(1 + \frac{\text{AGR}}{100}\right) \times \text{PS} \]

Where:

$\text{SF}$ is the sales forecast for the following year
$\text{AGR}$ is the average annual growth rate in terms of sales percentage growth (%)
$\text{PS}$ is the previous year's sales

What is a Sales Forecast?

A sales forecast is an estimation of the future amount of sales a company will make in any given period. This can be on a scale of weeks, months, years, or any other time period. The most common forecasts are yearly and quarterly. In order to make a proper sales forecast, a company must have a history of sales and growth in order to project into the future.

Example Calculation 1

Let's assume the following values:

Average Annual Growth Rate ($\text{AGR}$) = 10%
Previous Year's Sales ($\text{PS}$) = $500,000

Using the formula:

\[ \text{SF} = \left(1 + \frac{10}{100}\right) \times 500000 = 1.1 \times 500000 = 550000 \]

The Sales Forecast is $550,000.

Example Calculation 2

Let's assume the following values:

Average Annual Growth Rate ($\text{AGR}$) = 5%
Previous Year's Sales ($\text{PS}$) = $1,000,000

Using the formula:

\[ \text{SF} = \left(1 + \frac{5}{100}\right) \times 1000000 = 1.05 \times 1000000 = 1050000 \]

The Sales Forecast is $1,050,000.