CCalclabhub

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.

SymbolMeaning
R_startRevenue you are starting from
gGrowth rate per period, as a decimal
R_endRevenue after n periods

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.