Revenue Growth Rate Calculator

Revenue growth is a gap divided by where the business started. The annualised figure is a different question with a different answer, and collapsing the two into one number is why most growth reports quietly overstate themselves.

Revenue at the startThe earlier period you are measuring from.Revenue at the endThe later period you are measuring to.Number of periods between them3 for three years apart, 12 for twelve months apart. Enter 1 for a single step.

Total growth over the whole span

25.00%

Growth per period, compounded: 7.72%
Revenue added: 300,000
Ending revenue as a multiple of the start: 1.25

Values update as you type. This calculator covers the single scenario its formula assumes — see Common Mistakes for what it leaves out.

The formula this calculator uses

Revenue Growth = (Ending Revenue - Starting Revenue) / Starting Revenue

Start: Revenue in the earlier period — the baseline and always the divisor
End: Revenue in the later period, measured on the same basis as the start
End - Start: Revenue added in absolute terms, before any conversion to a rate
End / Start: Growth multiple — 1.25 is the same fact as a 25% rise

How to check the result by hand

1
Fix the two endpoints and confirm they share one definition
Take revenue from the earlier period as the start and revenue from the later period as the end. Both must be the same measure — net revenue on both sides, the same currency on both sides, and the same recognition policy on both sides. Here the start is 1,200,000 and the end is 1,500,000, three years apart.
2
Subtract to get the revenue added
Ending minus starting, in that order, gives 1,500,000 - 1,200,000 = 300,000. Keep this figure separate from the rate, because it is the one to quote when the base is small or when the audience needs to judge commercial substance rather than momentum.
3
Divide by the starting revenue, not by the later figure
300,000 divided by 1,200,000 is 0.25, so total growth is 25%. Dividing the same 300,000 by 1,500,000 gives 20%, which answers a different question — how far revenue would have to fall to return. The ending figure is simultaneously 1.25 times the start.
4
Count the growth steps between the endpoints
Periods are steps, not calendar labels. Four annual reports covering 2021 to 2024 contain three steps, so n is 3; three fiscal years contain only two, and using 2 instead of 3 here would report 11.8034% rather than the correct 7.7217%. Fractions are fine when the window does not land on an anniversary.
5
Annualise, then compound back to check
Raise the multiple to one over the number of periods and subtract one: 1.25^(1/3) - 1 = 0.077217, which is 7.7217% per period. Verify by projecting it forward — 1,200,000 x 1.077217^3 returns 1,500,000. If the check misses the endpoint, the error is almost always in n.

For worked examples, common mistakes and the limits of this formula, read the full How To Calculate Revenue Growth Rate page.