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Revenue Growth Calculator
Enter revenue for two periods to see the growth rate and the change in dollars. If the two figures are more than one period apart — this year against three years ago, say — the calculator also gives the compound growth rate per period.
- Change in revenue
- $50,000.00
- Compound growth per period
- 25%
- Next period at the same rate
- $312,500.00
Saved setups
Save a set of inputs you reuse — your usual rate, your loan, your room sizes — and load it back in one tap.
Your recent calculations
Results you calculate here are kept on this device so you can come back to them.
Formula
How to use it
- Enter revenue for the earlier period.
- Enter revenue for the later period.
- Enter how many periods separate them — 1 for consecutive months, quarters or years.
- Read the growth rate and the projection for the next period.
Worked examples
Revenue rising from $200,000 last year to $250,000 this year
- Revenue growth
- 25%
- Change in revenue
- $50,000.00
- Compound growth per period
- 25%
- Next period at the same rate
- $312,500.00
Revenue rising from $1,000,000 to $1,728,000 over three years
- Revenue growth
- 72.8%
- Change in revenue
- $728,000.00
- Compound growth per period
- 20%
Compare the right periods
Year over year (this quarter against the same quarter last year) removes seasonality and is the fairest comparison for most businesses. Month over month shows momentum but is distorted by seasons, holidays and the number of selling days in each month.
Growth from a small base looks dramatic: going from $1,000 to $3,000 is 200%. Always read the percentage together with the dollar change.
Why compound growth is lower than the average
Growing from $1,000,000 to $1,728,000 over three years is 72.8% in total. Dividing by three suggests 24.3% a year, but the true compound rate is 20%, because each year’s growth builds on a larger base: 1.2 × 1.2 × 1.2 = 1.728.
Monthly growth compounds powerfully. 5% a month is 79.6% a year, and 10% a month more than triples revenue in a year.
Questions people ask
How do you calculate revenue growth?
Subtract the earlier revenue from the later revenue, divide by the earlier revenue and multiply by 100. From $80,000 to $100,000 is 25% growth.
What if revenue fell?
The result is negative. From $250,000 down to $200,000 is −20%. Note that a 20% fall needs a 25% rise to recover.
What is the difference between growth rate and CAGR?
The growth rate compares two points in total. CAGR, the compound annual growth rate, is the steady yearly rate that would take you from the first figure to the last. With one period between them, the two are the same.