Revenue Growth Calculator

One of the most important indicators of a company's growth and success is achieving higher sales and revenue each year. Use this revenue growth calculator to see just how well revenue has improved over time.

Required Information

Initial Revenue:

Final Revenue:

Revenue Growth:

What it is

What is Revenue Growth?

Create Date: October 1, 2024

Last Modified Date: December 2, 2024

Revenue growth refers to the percent difference between revenue at two different points in time. It is used to get a general idea of how well the company has performed and grown in terms of revenue.

How do you Calculate Revenue Growth?

Revenue growth can be calculated with two variables:

Initial revenue

Final revenue

We can then use these values in the following formula to find the growth in revenue:

An image showing the formula for calculating the amount revenue has grown.

Where:

RG = Revenue Growth

FR = Final revenue

IR = Initial revenue

Understanding Your Results

Your result will be a percentage. This percent represents the change between the initial revenue and the final revenue. If the final revenue is greater, than it will indicate revenue growth. But it is possible for the revenue to go down and the results will have a negative percentage which will reflect revenue shrinkage or less revenue.

How to Use the Revenue Growth Tool

Our revenue growth tool is very easy to use and can get you your answer in just a few seconds. The steps involved with using this tool includes:

Enter initial revenue.

Enter the final revenue.

Hit calculate and get your answer instantly!

Example Calculation

Let's say we have a taco shop. We want to see how much our revenue has grown this year compared to last year. We will use our last year's revenue as the initial revenue in our tool, which was $125,000. This year we did $189,000 in revenue.

With the values in their proper field, we are now ready to hit calculate and get our answer. Our revenue growth is 51.2%. This is generally considered to be a very good revenue growth percent and something that we are happy with.

Revenue Growth - Frequently Asked Questions

20% revenue growth is considered good in many different industries. The exact numbers that are considered good or bad depend on the business and industry, 20% may be good generally but when applied to a specific industry like manufacturing, it may be on the lower end.

Generating some form of revenue growth will require your business to adapt and improve to offer better services or products, attract more clients, among other tasks. Your pricing may need to be adjusted, your target market may need to be realigned, there are so many possibilities.

Yes, you can predict revenue growth but it may not be 100% accurate. You can use forecasting tools and information from previous periods of your business to help forecast the revenue growth for your new time period.

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