Sales growth is the change in sales against an earlier period. Read year on year sales growth and CAGR before you set a growth slab.
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Sales growth
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Change in sales
Subtract the previous year's sales from this year's, divide by the previous year's sales and multiply by 100. A division that billed ₹42 crore against ₹36 crore grew 16.67%. Both years must cover the same products, headquarters and type of sales, or the growth rate reflects a change in scope.
Sales growth compares two periods. CAGR is the steady yearly rate that links a starting year to an ending year. Sales that rose from ₹30 crore to ₹42 crore over three years grew 40% in total, which is 11.87% a year. CAGR smooths out one strong or weak year when you set a growth target.
Use both, or the plan favours small bases. A rep who goes from ₹10 lakh to ₹15 lakh grows 50%. A rep who goes from ₹2 crore to ₹2.3 crore grows 15% but adds ₹30 lakh against ₹5 lakh. Set a minimum base for the growth slab, and run it inside incentive compensation management so both measures are applied the same way.
Compare this year's sales with the previous year's sales for the same headquarters and products, mapped the way they are now. That needs a retrospective incentive calculation on the previous year's data, run on the current mapping and kept as a dated record. Without it, the base changes after the target is set. Kennect can recalculate the closed period with the mapping that applied at the time.
Because the growth came from lower-margin products or deeper discounts. Revenue rises while each rupee keeps less. Check growth by product line beside margin before paying a growth slab across the board. The sales margin percentage calculator shows what each line keeps from its sales.
Set it on a three-year CAGR rather than one year's change, and take out one-off effects first. A month of stock loaded before a price rise inflates the base and makes the next year look weak. Separate that one-off from the trend with the sales lift calculator before the target goes into the plan.
Last reviewed: 11 October 2026
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Kennect holds over 10% market share in India's pharma and life sciences sector. It runs incentives for over 60,000 medical representatives, with every growth base on record.
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