📈 Revenue Growth Calculator
Calculate revenue growth rate
How to Use This Calculator
Enter Current Revenue
Input the current period revenue - total revenue for the current period (month, quarter, or year).
Enter Previous Revenue
Enter the previous period revenue - total revenue for the previous period (same time frame as current).
Review Revenue Growth
See the revenue growth rate percentage and absolute growth amount. Positive percentage indicates growth, negative indicates decline. Compare to industry benchmarks and historical trends.
Formula
Revenue Growth Rate = ((Current Revenue - Previous Revenue) / Previous Revenue) × 100
Absolute Growth = Current Revenue - Previous Revenue
Example Calculation:
If current revenue $1,100,000, previous revenue $1,000,000:
• Absolute growth = $1,100,000 - $1,000,000 = $100,000
• Growth rate = ($100,000 / $1,000,000) × 100 = 10%
• This indicates 10% revenue growth
About Revenue Growth Calculator
A revenue growth calculator helps you calculate the revenue growth rate, which measures the percentage change in revenue from one period to the next. Revenue Growth Rate = ((Current Revenue - Previous Revenue) / Previous Revenue) × 100. Revenue growth is a key metric for tracking business performance, expansion, and success. Positive growth indicates business expansion, while negative growth indicates decline. Understanding revenue growth helps assess business health, identify trends, and plan for the future.
When to Use This Calculator
- Performance Tracking: Track revenue growth over time
- Business Analysis: Analyze business performance
- Planning: Plan and forecast revenue
- Comparison: Compare growth to benchmarks
Understanding Revenue Growth
- Positive Growth: Increase in revenue (good)
- Negative Growth: Decrease in revenue (concerning)
- Growth Rate: Percentage change in revenue
- Absolute Growth: Dollar amount change
Why Use Our Calculator?
- ✅ Performance Tracking: Calculate revenue growth accurately
- ✅ Business Analysis: Analyze business performance
- ✅ Planning: Plan and forecast revenue
- ✅ Comparison: Compare growth to benchmarks
- ✅ 100% Free: No registration or payment required
Frequently Asked Questions
What is revenue growth rate?
Revenue growth rate measures the percentage change in revenue from one period to the next. Revenue Growth Rate = ((Current Revenue - Previous Revenue) / Previous Revenue) × 100. Revenue growth is a key metric for tracking business performance, expansion, and success. Positive growth indicates business expansion, while negative growth indicates decline. Understanding revenue growth helps assess business health, identify trends, and plan for the future. Growth rates can be calculated for any time period (monthly, quarterly, annually).
What's a good revenue growth rate?
A good revenue growth rate depends on the industry, business stage, and context. Generally: (1) High growth startups - 50-100%+ annually, (2) Growth companies - 20-50% annually, (3) Established businesses - 5-15% annually, (4) Mature businesses - 2-5% annually. However, consistent positive growth is generally good, while negative growth may indicate issues. Compare to industry benchmarks and historical trends. Consider both growth rate and absolute growth amount.
How is revenue growth different from profit growth?
Revenue growth measures the increase in sales, while profit growth measures the increase in profit. Revenue growth: (1) Shows top-line growth - increase in sales, (2) Doesn't consider costs - doesn't account for expenses, (3) Volume indicator - indicates business expansion. Profit growth: (1) Shows bottom-line growth - increase in profit, (2) Considers costs - accounts for expenses, (3) Efficiency indicator - indicates profitability improvement. Both are important - revenue growth shows expansion, while profit growth shows profitability. Ideally, both should grow together.
Why is revenue growth important?
Revenue growth is important because it: (1) Business expansion - indicates business expansion and success, (2) Market share - shows market share gains, (3) Investor confidence - attracts investors and increases valuation, (4) Employment - supports job creation, (5) Innovation - enables investment in innovation, (6) Sustainability - essential for long-term sustainability. However, revenue growth without profit growth may not be sustainable. Balance revenue growth with profitability for long-term success.