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.
Worked example
Scenario: Revenue rising from $120,000 last year to $150,000 this year.
- Growth amount: $150,000 − $120,000 = $30,000.
- Growth rate: $30,000 ÷ $120,000 × 100 = 25%.
Result: 25% revenue growth.
Growth depends on the comparison period
Revenue growth should compare like-for-like periods whenever possible. Seasonal businesses can produce misleading month-to-month percentages, so year-over-year comparisons may be more informative when seasonality is strong.
Tips and common mistakes
- Compare equal periods: a month against the same month last year avoids seasonal distortion.
- For growth over several years, use the ROI Calculator's annualized figure to get a yearly rate.
- Revenue growth says nothing about profit; check margins alongside it.
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.