1. What is Sales Forecast Accuracy?

Definition: This calculator measures how accurate your sales forecasts are compared to actual sales results.

Purpose: It helps businesses evaluate the reliability of their sales forecasting methods and improve future predictions.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• Forecast — Predicted sales amount
• Sales — Actual sales achieved
• Accuracy — Expressed as a percentage (0-100%)

Explanation: The formula calculates the absolute percentage error between forecast and actual sales, then subtracts from 1 to get accuracy.

3. Importance of Forecast Accuracy

Details: Accurate sales forecasting helps with inventory management, resource allocation, budgeting, and business planning.

4. Using the Calculator

Tips: Enter your forecasted sales amount and actual sales achieved. Actual sales must be > 0 for calculation.

5. Frequently Asked Questions (FAQ)

Q1: What is considered good forecast accuracy?
A: Typically 80-90% is good, but this varies by industry. Higher is always better.

Q2: Why can accuracy exceed 100%?
A: It can't with this formula. 100% means perfect accuracy, 0% means complete inaccuracy.

Q3: How do I improve forecast accuracy?
A: Analyze historical data, consider market trends, and refine your forecasting methods.

Q4: Should I use units or revenue?
A: Both work - just be consistent between forecast and actual values.

Q5: What if actual sales are zero?
A: The calculation requires division by actual sales, so it can't be zero.