Enter the total sales in the current period and the total sales in the previous period to calculate the drop in sales.

## Drop in Sales Formula

The following formula is used to calculate a drop in sales.

DS = (PS – CS) / PS * 100

• Where DS is the Drop in Sales (%)
• PS is the previous period sales (\$)
• CS is the current period sales (\$)

To calculate a Drop in Sales, subtract the current sales by the previous sales, divide by the previous sales, then multiply by 100 to get the sales drop in precent.

## What is a Drop in Sales?

Definition:

A drop in sales is a measure of the percentage of decline in sales from one period to another. The percentage is a ratio of the change in sales to the previous sales revenue.

## How to calculate Drop in Sales?

Example Problem:

The following example outlines how to calculate a drop in sales.

First, determine the previous periods sales revenue. In this example, a company had a monthly sales revenue of \$500,000.00 for the previous month.

Next, determine the current periods sales revenue. In this case, the following month the company achieved a sales revenue of \$400,000.00.

Finally, calculate the drop in sales percentage using the formula above:

DS = (PS – CS) / PS * 100

DS = (500000 – 400000) / 500000 * 100

DS = 20%