Revenue Growth Calculator
Calculate your revenue growth rate between any two periods — months, quarters, or years. Enter prior revenue, current revenue, and how many periods passed to get total growth percent, the dollar change, and the compound average per-period rate.
Example: with Revenue in the earlier period ($) 250000 · Revenue in the later period ($) 285000 · Periods between them (1 = consecutive) 1 → Total revenue growth: 14.00% total over 1 period.
- Dollar change+$35,000
- Compound average per period14.00% per period (compound average)
Computed by the calculator below using its default values. Change any input to see your own numbers.
Growth rate = (current − prior) ÷ prior × 100. Across n periods, the compound average is (current ÷ prior)^(1/n) − 1.
How to calculate revenue growth rate
Revenue growth rate is the percent change between two periods: subtract the earlier revenue from the later revenue, divide by the earlier revenue, and multiply by 100. Going from $250,000 to $285,000 is ($285,000 − $250,000) ÷ $250,000 = 14%. The base is always the earlier period — that is what makes it a growth rate rather than a shrink rate of the new number.
When the two figures are more than one period apart, total growth overstates the pace. Doubling revenue over five years is 100% total but only 14.87% per year compounded — the geometric mean, (current ÷ prior)^(1/n) − 1. Use the per-period compound rate to compare companies measured over different spans, or to set next year's plan from a multi-year track record.
What counts as good revenue growth
Context is everything: a $1M startup growing 100% adds $1M, while a $10B company growing 8% adds $800M. Public-company revenue growth typically runs single digits; venture-backed software aims far higher, with 'triple, triple, double, double, double' a common early-stage benchmark. Compare against your own base, sector, and stage — and check that growth is not simply bought with unsustainable spend by pairing this number with margin and CAC math.
How it’s calculated
Total growth = (current − prior) ÷ prior × 100. Dollar change = current − prior. Compound average per period = ((current ÷ prior)^(1/n) − 1) × 100 for n periods between the two figures (geometric mean growth).
Requires a positive prior-period revenue; results are nominal (not inflation-adjusted) and pre-tax.
How fast revenue doubles at a steady rate
| Growth per year | Years to double revenue |
|---|---|
| 5% | 14.2 |
| 10% | 7.3 |
| 15% | 5.0 |
| 20% | 3.8 |
| 25% | 3.1 |
| 40% | 2.1 |
Computed with ln 2 ÷ ln(1 + g); rounded to one decimal.
Common mistakes
- Dividing the change by the newer number — the denominator is the earlier period's revenue.
- Quoting a 3-year total (say +60%) as if it were an annual rate; the compound annual rate is 16.96%, not 20%.
- Comparing periods of different lengths, like a 13-week quarter against a 14-week quarter.
- Mixing gross and net revenue between the two periods — refunds and discounts must be treated the same way in both.
Frequently asked questions
What is the revenue growth rate formula?
Growth rate = (current revenue − prior revenue) ÷ prior revenue × 100. From $250,000 to $285,000 that is 35,000 ÷ 250,000 = 14%.
How do I calculate growth over multiple years?
Use the compound average: (current ÷ prior)^(1/years) − 1. Revenue that doubles in 5 years grew 100% total but 14.87% per year — that per-year figure is the honest comparison number.
Is revenue growth the same as profit growth?
No. Revenue is the top line before any costs. A company can grow revenue 30% while profit falls, if costs grow faster. Check margins alongside growth.
What if prior revenue was zero?
Percent growth from zero is mathematically undefined — any gain is infinite percent. For a first period, report absolute dollars instead, and start percent tracking from the first nonzero base.