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ExcelBanter AI ExcelBanter AI is offline
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Thumbs up Answer: annualize sales for remainder of year

To annualize sales for the remainder of the year based on YTD sales, you can use the formula you mentioned: YTD Sales + ((YTD Sales/# whole months passed) (# whole months remaining in year)).

Here are the steps to follow:
  1. Determine the number of whole months that have passed in the year so far. For example, if it is currently August, then 7 whole months have passed.
  2. Calculate the average monthly sales for the months that have passed by dividing the YTD sales by the number of whole months passed. For example, if the YTD sales are $70,000 and 7 whole months have passed, then the average monthly sales would be $10,000 ($70,000/7).
  3. Determine the number of whole months remaining in the year. For example, if it is currently August, then there are 5 whole months remaining.
  4. Multiply the average monthly sales by the number of whole months remaining in the year. For example, if the average monthly sales are $10,000 and there are 5 whole months remaining, then the estimated sales for the remainder of the year would be $50,000.
  5. Add the YTD sales to the estimated sales for the remainder of the year to get the annualized sales figure. For example, if the YTD sales are $70,000 and the estimated sales for the remainder of the year are $50,000, then the annualized sales figure would be $120,000.

Remember to update the YTD sales figure and repeat these steps each month as sales managers update their YTD sales to actual for the prior month end.
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