Growth
Projecting revenue from a known growth rate
The same relationship solved for the endpoint. Use it to check a computed rate by compounding it back, or to project what a given rate produces over n periods.
The Formula
End = Start x (1 + g)^n
The same relationship solved for the endpoint. Use it to check a computed rate by compounding it back, or to project what a given rate produces over n periods.
| Symbol | Meaning | Unit | Notes |
|---|---|---|---|
| R_start | Revenue you are starting from | currency | The last known figure when projecting forward. |
| g | Growth rate per period, as a decimal | decimal | Enter 7.7217% as 0.077217. The factor is 1 + g, which is 1.077217 here. |
| R_end | Revenue after n periods | currency | 1,200,000 grown at 7.7217% for three periods returns 1,500,000, which is the check that catches a miscounted n. |
What Each Symbol Means
R_startcurrency
Revenue you are starting from
The last known figure when projecting forward.
gdecimal
Growth rate per period, as a decimal
Enter 7.7217% as 0.077217. The factor is 1 + g, which is 1.077217 here.
R_endcurrency
Revenue after n periods
1,200,000 grown at 7.7217% for three periods returns 1,500,000, which is the check that catches a miscounted n.
See It Worked With Real Numbers
A formula on its own does not tell you which number goes where. The how to calculate revenue growth rate page applies this equation to a concrete case, shows every intermediate step, and names the mistakes that produce a wrong answer even when the algebra is right.
Where This Formula Appears
This equation is the working core of How To Calculate Revenue Growth Rate, filed under Business. Every number the guide produces comes from substituting into this one line.