A sales forecast is the revenue you expect in the periods ahead. Project it from your growth trend, or from booked revenue and open pipeline.
Key terms
Last period sales
Sales in the most recent full period, such as last month.
Growth rate per period
The growth you expect each period, such as CAGR from the Sales Growth Calculator.
Periods ahead
The number of periods you want to forecast.
Booked revenue
Revenue already invoiced or contracted for the period.
Open pipeline
Qualified open deals expected to close in the period.
Forecast revenue
Booked revenue plus open pipeline multiplied by win rate by value.
Share already secured
Booked revenue as a share of forecast revenue.
Working example
An FMCG region billed ₹2 crore last month. Sales have grown about 2% a month, so the regional head forecasts the next six months. For the current month, the region has ₹3 crore booked and ₹8 crore of open pipeline, at a 25% win rate by value.
Step 1. Growth factor for six months: 1.02^6 = 1.1262
Step 2. Forecast for month six: ₹2,00,00,000 × 1.1262 = ₹2,25,23,248
Step 3. Total for the six months: 1.0200 + 1.0404 + 1.0612 + 1.0824 + 1.1041 + 1.1262 = 6.4343, × ₹2,00,00,000 = ₹12,86,85,668
Step 4. Pipeline expected to close: ₹8,00,00,000 × 25% = ₹2,00,00,000
Step 5. Forecast revenue this month: ₹3,00,00,000 + ₹2,00,00,000 = ₹5,00,00,000, of which 60% is secured
The answer
The region should bill about ₹12,86,85,668 over six months, reaching ₹2,25,23,248 in month six. This month's forecast is ₹5 crore, with ₹3 crore, or 60%, already secured.
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Sales Forecast Deviation
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Sales Forecast Percentage
A sales forecast shows the revenue to expect in the periods ahead. Use the trend tab for growth and the pipeline tab for the current period.
Take last period's sales and apply your expected growth rate once for each period ahead. ₹2 crore growing 2% a month reaches about ₹2.25 crore in month six. Base the rate on several periods of actuals, not one strong month. The sales growth calculator gives a steady rate from past sales.
It adds booked revenue to the share of open pipeline you expect to win. With ₹3 crore booked and ₹8 crore of pipeline at a 25% win rate by value, the forecast is ₹5 crore. Use win rate by value, not by count, when deal sizes vary. The win percentage calculator gives both rates.
Use the forecast as the starting point, then adjust for territory potential and the plan's growth goal. A target far above the forecast is a payout the team is unlikely to earn. A target well below it pays for sales that would have happened anyway. The sales target calculator splits the total by rep.
Refresh the trend forecast each month as actuals arrive, and the pipeline forecast each week during the period. Keep the forecast used for targets fixed once the period starts, so payouts follow a known base. Sales performance management keeps both versions on record.
Three causes show up often. The growth rate comes from one unusual period, stale deals stay in the pipeline, and close dates slip past period end. Each one pushes the forecast above what arrives. The sales pipeline calculator shows how much qualified pipeline the target really needs.
A small accuracy component can help managers forecast honestly. Pay it only alongside attainment, so a manager cannot earn it by forecasting low and hitting a small number. Set the accuracy band and the measuring date in the plan. Incentive compensation management applies those rules the same way every period.
Last reviewed: 11 October 2026
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