Enter the initial and final sales figures into the calculator to determine the percentage decrease in sales. This calculator helps in analyzing the sales performance over a period.
Sales Decrease Formula
The following formula is used to calculate the percentage decrease in sales:
SD = ((IS - FS) / IS) * 100
Variables:
- SD is the sales decrease (%)
- IS is the initial sales ($)
- FS is the final sales ($)
To calculate the sales decrease, subtract the final sales from the initial sales, divide by the initial sales, and then multiply by 100 to get the percentage.
What is Sales Decrease?
Sales decrease is a measure of the reduction in sales revenue over a certain period. It is expressed as a percentage and indicates how much sales have fallen compared to a previous period. This metric is crucial for businesses to understand their sales trends and to make informed decisions about marketing, production, and strategic planning.
How to Calculate Sales Decrease?
The following steps outline how to calculate the Sales Decrease.
- First, determine the initial sales (IS) in dollars.
- Next, determine the final sales (FS) in dollars.
- Next, gather the formula from above = SD = ((IS – FS) / IS) * 100.
- Finally, calculate the Sales Decrease (SD) in percentage.
- After inserting the variables and calculating the result, check your answer with the calculator above.
Example Problem :
Use the following variables as an example problem to test your knowledge.
initial sales (IS) = $5000
final sales (FS) = $4000
