Enter the total sales and the sales attributed to marketing into the calculator to determine the baseline sales.
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Baseline Sales Formula
The following equation is used to calculate the Baseline Sales.
BS = TS - SM
- Where BS is the baseline sales ($)
- TS is the total sales in the period ($)
- SM is the sales in the period attributed to marketing ($)
To calculate baseline sales, subtract the sales attributed to marketing from the total sales for a period.
What is a Baseline Sales?
Definition:
Baseline sales are considered all sales resulting from organic methods i.e. methods where money wasn’t spent on marketing.
How to Calculate Baseline Sales?
Example Problem:
The following example outlines the steps and information needed to calculate Baseline Sales.
First, determine the total amount of sales for the period. In this example, the period is a month and the total sales are $10,000.00.
Next, determine the total sales attributed directly to marketing. In this case, the marketing resulted in $2,000.00 in sales.
Finally, calculate baseline sales using the formula above:
BS = TS – SM
BS = 10,000 – 2,000
BS = $8,000.00
