Revenue Growth Rate Calculator

See how fast revenue grew between two periods.

How it is calculated

The tool compares two revenue figures: growth % = (current − previous) / previous × 100. It also shows the absolute change = current − previous in dollars and the multiple = current / previous, written with an x, such as 1.30x. Previous revenue is the earlier period and Current revenue the later one, both in the same currency and covering periods of equal length.

A decline gives a negative percentage and a multiple below 1: current revenue of 75 percent of the previous period shows -25.00% and 0.75x. The previous revenue must be above zero, because growth from zero is undefined, and in that case the tool gives no result. The percentage is simple period-over-period growth; it is not annualized or compounded across several periods.

Worked example

A shop earned $240,000 in the previous year and $312,000 in the current year. Change = 312,000 − 240,000 = $72,000. Growth = 72,000 / 240,000 × 100 = 30.00%. The multiple is 312,000 / 240,000 = 1.30x, meaning revenue is now 1.3 times the earlier figure. If the current year had been $180,000 instead, the same formula would give -25.00% and 0.75x.

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Common mistakes

  • Dividing by the current revenue instead of the previous. The base is always the earlier period; using the later one understates the growth.
  • Swapping the two fields. Then 30% growth appears as a decline of about 23.08%, because the starting point changes.
  • Comparing periods of different length, such as a 3-month quarter against a 12-month year. Both figures should cover the same span, ideally the same season too.
  • Reading 30% growth and 1.30x as different things. They are the same result, written two ways: 1.30x means 30% above the base.
  • Expecting a result when the previous revenue is zero (a launch period). Growth from nothing cannot be expressed as a percentage, so the tool shows nothing.

About this calculator

Revenue growth rate measures how much revenue changed between two periods, expressed as a percentage: (current period revenue minus prior period revenue) divided by prior period revenue, times 100. The same formula works whether you are comparing month-over-month, quarter-over-quarter, or year-over-year figures — only the periods being compared change.

It is one of the most closely watched metrics in business, especially for startups and SaaS companies where growth rate itself, not just absolute revenue, is often what investors and boards use to judge momentum. Entering the revenue for two periods returns the growth rate along with the dollar change, making it easy to see both the pace and the scale of the change.

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Comments (1)

  • Editorial team

    A growth rate for one short period does not scale up by multiplying. Growth of 5 percent every month is not 60 percent in a year; it compounds to roughly 80 percent. The tool gives the simple change between the two figures you enter, with no annualising, so for a yearly view compare twelve-month totals. Which two periods are you comparing, and would a compound annual rate be useful here?

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