Revenue Growth Calculator

How to use this revenue growth calculator

To calculate your revenue growth, enter your revenue for the current period (month, quarter or year) and the revenue for the previous period. The calculator will instantly display the percentage growth between these two periods.

Revenue growth formula

Revenue Growth (%) = [(Current Period Revenue - Previous Period Revenue) / Previous Period Revenue] × 100

Understanding the revenue growth result

While a growth rate of 10-20% is typically considered strong, the ideal growth rate can vary according to multiple factors such as your goals, industry, scale of business, product etc. The value can be either positive or negative.

• A positive revenue growth indicates an increase in business performance, sales, or market share. The higher this rate, the greater is your growth in revenue.

• A negative revenue growth suggests a decline in revenue, which could signal underlying issues in sales strategies, customer retention, or external market conditions.

When to calculate revenue growth

• At the end of each financial period (monthly, quarterly, annually) to track progress

• After launching new products, services, or marketing campaigns

• For quarterly and yearly reports to investors or stakeholders

How to calculate revenue growth (with example)

Let’s say your company’s revenue was $200,000 in the previous quarter and $250,000 in the current quarter. You can calculate your revenue growth as follows:

Revenue Growth (%) = [(Current Period Revenue - Previous Period Revenue) / Previous Period Revenue] × 100

Revenue Growth = [($250,000 - $200,000) / $200,000] × 100 = 25%

In this example, your company experienced a 25% revenue growth from the previous quarter.

How to improve your revenue growth

• Invest in targeted campaigns to attract new customers and boost brand awareness.
• Introduce new products or features to tap into new market segments or upsell existing customers.
• Implement loyalty programs, offer incentives, and provide excellent customer support to retain clients and reduce churn.
• Leverage omnichannel marketing strategies to reach more customers across different platforms (online, in-store, etc.).
• Adjust pricing models to find the optimal balance between competitiveness and profitability.
• Stay agile and responsive to shifts in market demand, competitor actions, and economic conditions.

Relevant channels: Business performance reviews, sales reports, financial planning, investor presentations, and quarterly or yearly revenue evaluations.