Step 1
Determine last year's overall sales and the month-by-month sales over the same reporting period. For example, management wants to estimate sales based on its prior year's results for the month of April. Last year, the company had $70,000 in sales and $10,000 of sales in April. This year, the company projected $90,000 in sales for the year.
Step 2
Divide the prior month's sales by the prior year's sales. In the example, $10,000 / $70,000 equals 14.2857 percent.
Step 3
Multiply the percent of sales the month represented for the prior year by the projected sales for the year. In the example, $90,000 * 14.2857 equals $12,857.14 of projected sales for the upcoming April.
Step 4
Determine the prior year's annual sales. For example, a company had $70,000 of sales last year.
Step 5
Create a projection of how much management plans on sales rising. In the example, due to inflation and the introduction of a new product, the company estimates sales will increase 10 percent.
Step 6
Add 1 to the percent increase projection. In the example, 1 + 0.1 equals 1.1.
Step 7
Multiply the prior year's sales by the number calculated in Step 3. In the example, $70,000 * 1.1 equals $77,000 of projected sales for the next year.