Growth
Total revenue growth over the whole span
The increase divided by where the business began. This is the figure to quote when the question is how much revenue grew in total.
The Formula
Total Growth = (End - Start) / Start
The increase divided by where the business began. This is the figure to quote when the question is how much revenue grew in total.
| Symbol | Meaning | Unit | Notes |
|---|---|---|---|
| R_start | Revenue in the earlier period | currency | The baseline and the divisor. It cannot be zero, and it sets the scale of every figure that follows. |
| R_end | Revenue in the later period | currency | Must be measured on exactly the same basis as the start, or the result describes a change in reporting. |
| g_total | Total growth as a decimal | decimal | 0.25 for a 25% rise, and -0.20 for a 20% decline. Multiply by 100 to express it as a percentage. |
What Each Symbol Means
R_startcurrency
Revenue in the earlier period
The baseline and the divisor. It cannot be zero, and it sets the scale of every figure that follows.
R_endcurrency
Revenue in the later period
Must be measured on exactly the same basis as the start, or the result describes a change in reporting.
g_totaldecimal
Total growth as a decimal
0.25 for a 25% rise, and -0.20 for a 20% decline. Multiply by 100 to express it as a percentage.
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.