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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.

Quick examples
$
$

Use 1 for year over year. Use 3 to compare this year with three years ago.

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Revenue growth25%
Change in revenue
$50,000.00
Compound growth per period
25%
Next period at the same rate
$312,500.00

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    Results you calculate here are kept on this device so you can come back to them.

      Formula

      Growth % = (later revenue − earlier revenue) ÷ earlier revenue × 100
      Compound growth per period = (later ÷ earlier)^(1 ÷ periods) − 1
      Next period at the same rate = later revenue × (1 + compound growth)

      How to use it

      1. Enter revenue for the earlier period.
      2. Enter revenue for the later period.
      3. Enter how many periods separate them — 1 for consecutive months, quarters or years.
      4. 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.

      Related calculators

      CAGR CalculatorCompound annual growth rate between a starting and ending value.Percent Change CalculatorPercentage change from an old value to a new one, up or down.Percent Increase CalculatorFind the % increase between two numbers, or add a % to a number.Profit CalculatorGross, operating and net profit with all three margins.Churn Rate CalculatorCustomer churn, retention and what it compounds to in a year.