Revenue Growth Rate Calculator

What is revenue growth rate?

Revenue growth rate is the percentage change in revenue between two equal time periods. It’s the single most-watched metric for understanding whether a business is expanding, contracting, or flat. For a deeper look at the formulas, projection methods, and Google Sheets templates, see our guide to calculating and projecting revenue growth.

The formula: (Current Period Revenue - Previous Period Revenue) / Previous Period Revenue x 100. If you made $2 million last year and $3 million this year, your revenue growth rate is 50%.

The periods must be equal. Compare a month to a month, a quarter to a quarter, a year to a year. Comparing Q4 (holiday spike) to Q1 (post-holiday slump) tells you about seasonality, not growth.

How this calculator works

The quick calculator handles the simple case: two revenue figures, one growth rate. Pick your period type (monthly, quarterly, yearly) and it shows the growth percentage. For monthly and quarterly periods, it also calculates the annualized rate so you can see what that growth looks like compounded over a full year.

The multi-period analyzer takes a series of revenue figures and runs a full analysis. It calculates your compound growth rate (CAGR for yearly, CMGR for monthly, CQGR for quarterly), detects whether your growth is accelerating, decelerating, steady, or volatile, and generates a narrative summary you can paste directly into reports or board decks.

The projection section estimates where revenue is heading based on your historical compound rate. The confidence band widens for volatile data because the prediction becomes less certain.

Revenue growth benchmarks

Growth expectations vary by stage:

• Early-stage startups often target 15-20% month-over-month. At this pace, a company roughly doubles every 4-5 months. Y Combinator considers 5-7% weekly growth exceptional.
• Growth-stage companies typically aim for 50-100%+ year-over-year. The “triple triple double double” pattern (3x revenue for two years, then 2x for two years) is a common VC benchmark.
• Established businesses growing 20%+ annually are considered high-growth. Less than 20% of large companies sustain this for more than five years.

A very high growth rate from a small base can be misleading. Going from $10K to $20K is 100% growth, but it’s $10K. Always report the absolute numbers alongside the percentage.

Projecting revenue growth

This calculator shows projections based on your historical compound rate. For a deeper look at projection methods, including moving averages, linear regression, exponential smoothing, and bottom-up analysis, see our guide to calculating and projecting revenue growth.

The right projection method depends on your business maturity. Startups with limited data should use bottom-up estimates (units x price). Companies with 12+ months of revenue history can start using statistical methods like the compound rate projections in the analyzer above.

Common mistakes

Ignoring seasonality. Retail revenue spikes in Q4. Comparing Q4 to Q3 shows massive growth followed by a crash in Q1. Use year-over-year comparisons for seasonal businesses.

Confusing revenue growth with profit growth. Revenue can grow 50% while profits shrink if costs are growing faster. Revenue growth alone doesn’t tell you whether the business is healthy.

Using growth rate on a negative base. If you lost money last period and made money this period, the standard formula produces a misleading number. Report the absolute change instead.