Revenue Growth Calculator
Calculate the percentage revenue growth between two periods, such as year-over-year or quarter-over-quarter.
About the Revenue Growth Calculator
Revenue growth rate is one of the first numbers investors, lenders, and business owners look at to judge momentum — it turns two raw revenue figures into a single percentage that is easy to track and compare across periods or against competitors.
How It Works
The calculator subtracts previous period revenue from current period revenue to find the dollar growth, then divides that by the previous period revenue to express growth as a percentage.
Growth (%) = (Current Revenue − Previous Revenue) / Previous Revenue × 100.
Example
Scenario: Revenue grew from $120,000 to $150,000 between two periods.
Result: Growth amount of $30,000, a revenue growth rate of 25%.
Assumptions & Limitations
- Assumes both periods are of comparable length — comparing a full year to a single quarter would distort the result.
- Assumes revenue figures are measured consistently, using the same accounting method for both periods.
- A single-period growth rate can be misleading if either period included a one-time spike or drop — trend analysis over several periods is more reliable.
- Does not account for inflation, which can inflate nominal revenue growth without any real increase in volume.
Frequently Asked Questions
What is the difference between year-over-year and quarter-over-quarter growth?
Year-over-year compares the same period twelve months apart, which cancels out seasonal effects, while quarter-over-quarter compares consecutive quarters and can be more volatile due to seasonality.
What counts as good revenue growth?
Benchmarks vary widely by industry and company stage — a mature company growing 5-10% annually may be considered healthy, while an early-stage startup is often expected to grow much faster.
Can revenue growth be negative?
Yes — if current revenue is lower than the previous period, the growth rate will be negative, indicating a revenue decline rather than growth.