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%