Project future sales from current sales and a growth rate per month, quarter or year, or find the growth rate needed to reach a sales target.

A constant-rate projection assumes the entered sales pattern continues. It does not predict demand, seasonality or business conditions.

Rate sensitivity

Projected Sales Formula

For the observed-day run-rate mode, divide revenue by observed calendar days and multiply by the chosen days in a projected month, 30.5 by default. Twelve 30.5-day modeled months represent 366 days, not an exact calendar year. Compound modes instead use final-period sales = current sales × (1 + growth / 100)periods; cumulative sales sum future periods 1 through n and exclude the current period.

MS = CR / D * 30.5

YS = MS * 12

  • Where MS is the projected monthly sales revenue ($)
  • YS is the projected yearly sales revenue ($)
  • CR is the current revenue ($)
  • D is the number of days the current revenue was achieved over (days)

In this example, the current revenue is just your total sales during an arbitrary time period, say 10 days, and your number of days is then 10.

Count all observed calendar days, including weekends and days without sales. The run rate assumes a constant daily average; compound scenarios assume a constant rate per selected period. Neither model accounts for seasonality or guarantees future sales. The inverse compound-rate method follows the compound-growth relationship described by the U.S. Bureau of Economic Analysis.

Projected Sales Definition

What are projected sales?

Projected sales are an estimate of the total sales a business will achieve in a time period given their current average amount of sales (typically given on a daily basis).

Example Problem

How to calculate projected sales?

  1. First, determine the time period of data you have to be analyzed.

    For this example, we have 10 days of data.

  2. Next, determine the total revenue/sales over the same time period.

    For this example problem, the business made a total of $6,000.00 in sales over the previous 10-day period.

  3. Finally, calculate the projected sales on a monthly and yearly basis.

    Using the formulas above, the projected sales are calculated as follows:
    MS = $6,000/ 10 * 30.5
    MS =$18,300.00
    YS = $18,300 * 12
    YS = $219,600.00