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