Calculate Company Growth Rate

Company Growth Rate Calculator

Calculate CAGR and Percentage Growth for Revenue, Profit, or Users

Enter initial revenue, user count, or sales figures.

Enter final revenue, user count, or sales figures.

The time duration between start and end values.

Understanding Company Growth Rate

Measuring the growth rate of a company is fundamental for business owners, investors, and financial analysts. It indicates how fast a business is expanding in terms of revenue, user base, market share, or profitability. While there are several ways to calculate growth, the two most common metrics are Total Percentage Growth and the Compound Annual Growth Rate (CAGR).

What is CAGR?

The Compound Annual Growth Rate (CAGR) is one of the most accurate ways to calculate and determine returns for individual assets, investment portfolios, and corporate growth over time. Unlike simple average growth, which can be misleading due to volatility, CAGR assumes the investment grew at a steady rate, compounding over the specified period.

The formula for CAGR is:

CAGR = ( (Ending Value / Beginning Value) ^ (1 / Number of Periods) ) – 1

Why Use This Calculator?

This calculator helps you determine:

• Revenue Growth: How much your sales have increased over a specific timeframe (e.g., Year-over-Year).
• User Acquisition: The rate at which your platform is gaining new users.
• Profit Expansion: The compounding growth of your net income.

Example Calculation

Imagine a startup had $100,000 in revenue in Year 1. By Year 4 (a duration of 3 years), the revenue grew to $250,000.

• Starting Value: 100,000
• Ending Value: 250,000
• Periods: 3 Years

Using the calculator, the CAGR would be approximately 35.72%. This means the company grew its revenue effectively by 35.72% every single year compounded, even if the actual growth fluctuated year to year.

Interpreting the Results

Total Percentage Growth: This shows the raw percentage increase from start to finish. In the example above, the total growth is 150%.

CAGR: This smoothes out the volatility. A high CAGR indicates a rapidly scaling company, which is often a key metric for Venture Capitalists and investors.

function calculateGrowth() { // Get input values var startVal = document.getElementById('startValue').value; var endVal = document.getElementById('endValue').value; var periods = document.getElementById('periodLength').value; // Clean inputs var s = parseFloat(startVal); var e = parseFloat(endVal); var p = parseFloat(periods); var resultBox = document.getElementById('resultDisplay'); // Validation if (isNaN(s) || isNaN(e) || isNaN(p) || s === 0 || p === 0) { alert("Please enter valid non-zero numbers for all fields to calculate growth."); resultBox.style.display = 'none'; return; } // Calculations // 1. Absolute Growth var absGrowth = e – s; // 2. Total Percentage Growth var totalPercent = ((e – s) / s) * 100; // 3. CAGR Formula: (End/Start)^(1/n) – 1 var cagrDecimal = Math.pow((e / s), (1 / p)) – 1; var cagrPercent = cagrDecimal * 100; // 4. Simple Average Growth (Absolute / periods) var simpleAvg = absGrowth / p; // Formatting var formatter = new Intl.NumberFormat('en-US', { style: 'decimal', minimumFractionDigits: 2, maximumFractionDigits: 2 }); // Display Results resultBox.style.display = 'block'; document.getElementById('resCAGR').innerHTML = formatter.format(cagrPercent) + "%"; document.getElementById('resTotalPercent').innerHTML = formatter.format(totalPercent) + "%"; document.getElementById('resAbsolute').innerHTML = formatter.format(absGrowth); document.getElementById('resAvgSimple').innerHTML = formatter.format(simpleAvg) + " / period"; }