.calculator-container {
max-width: 600px;
margin: 20px auto;
font-family: 'Segoe UI', Tahoma, Geneva, Verdana, sans-serif;
border: 1px solid #e0e0e0;
border-radius: 8px;
padding: 25px;
background-color: #f9f9f9;
box-shadow: 0 4px 6px rgba(0,0,0,0.05);
}
.calculator-container h2 {
text-align: center;
color: #2c3e50;
margin-bottom: 25px;
}
.input-group {
margin-bottom: 15px;
}
.input-group label {
display: block;
margin-bottom: 5px;
font-weight: 600;
color: #34495e;
}
.input-group input {
width: 100%;
padding: 10px;
border: 1px solid #ccc;
border-radius: 4px;
font-size: 16px;
box-sizing: border-box; /* Ensures padding doesn't affect width */
}
.calc-btn {
width: 100%;
padding: 12px;
background-color: #27ae60;
color: white;
border: none;
border-radius: 4px;
font-size: 18px;
cursor: pointer;
transition: background-color 0.3s;
margin-top: 10px;
}
.calc-btn:hover {
background-color: #219150;
}
.result-box {
margin-top: 25px;
padding: 20px;
background-color: #ffffff;
border: 1px solid #dcdcdc;
border-radius: 4px;
text-align: center;
}
.highlight {
font-weight: bold;
color: #2c3e50;
}
.highlight-main {
font-weight: 800;
font-size: 1.4em;
color: #2980b9;
}
.analysis {
font-style: italic;
color: #7f8c8d;
margin-top: 10px;
font-size: 0.9em;
}
/* SEO Article Styles */
.seo-content {
max-width: 800px;
margin: 40px auto;
font-family: 'Segoe UI', Tahoma, Geneva, Verdana, sans-serif;
line-height: 1.6;
color: #333;
}
.seo-content h2 {
color: #2c3e50;
border-bottom: 2px solid #27ae60;
padding-bottom: 10px;
margin-top: 30px;
}
.seo-content h3 {
color: #2980b9;
margin-top: 25px;
}
.seo-content ul {
margin-bottom: 20px;
}
.seo-content li {
margin-bottom: 10px;
}
.formula-box {
background-color: #f0f4f8;
padding: 15px;
border-left: 5px solid #2980b9;
font-family: monospace;
margin: 20px 0;
font-size: 1.1em;
}
function calculateGrowth() {
// Get input values
var priorRev = document.getElementById('prior_period_revenue').value;
var currentRev = document.getElementById('current_period_revenue').value;
// Validate inputs
if (priorRev === "" || currentRev === "") {
alert("Please enter both Prior Year Revenue and Current Year Revenue values.");
return;
}
var prior = parseFloat(priorRev);
var current = parseFloat(currentRev);
// Check for NaN
if (isNaN(prior) || isNaN(current)) {
alert("Please enter valid numeric values for revenue.");
return;
}
// Handle edge case where prior revenue is 0
if (prior === 0) {
alert("Prior Year Revenue cannot be zero for a growth rate calculation (mathematically undefined).");
return;
}
// Perform Calculation
// Formula: ((Current – Prior) / Prior) * 100
var difference = current – prior;
var growthRate = (difference / prior) * 100;
// Display Logic
document.getElementById('result_area').style.display = 'block';
// Format Currency
var currencyFormat = new Intl.NumberFormat('en-US', {
style: 'currency',
currency: 'USD',
});
document.getElementById('rev_diff').innerHTML = currencyFormat.format(difference);
var growthElement = document.getElementById('growth_pct');
growthElement.innerHTML = growthRate.toFixed(2) + "%";
// Styling based on positive/negative growth
var analysisText = document.getElementById('analysis_text');
if (growthRate > 0) {
growthElement.style.color = "#27ae60"; // Green for growth
analysisText.innerHTML = "Your business is expanding. You have generated " + growthRate.toFixed(2) + "% more revenue compared to the previous period.";
} else if (growthRate < 0) {
growthElement.style.color = "#c0392b"; // Red for decline
analysisText.innerHTML = "Your revenue has decreased. You generated " + Math.abs(growthRate).toFixed(2) + "% less revenue compared to the previous period.";
} else {
growthElement.style.color = "#7f8c8d"; // Grey for stagnant
analysisText.innerHTML = "Your revenue has remained stagnant with 0% growth year-over-year.";
}
}
How to Calculate Annual Revenue Growth Rate
Calculating your Annual Revenue Growth Rate is one of the most fundamental tasks in financial analysis. It provides a clear snapshot of how quickly your business is expanding (or contracting) over a specific 12-month period. Whether you are a startup seeking investment or an established company tracking year-over-year (YoY) performance, understanding this metric is crucial for strategic planning.
The Revenue Growth Formula
The calculation is straightforward. It measures the percentage increase or decrease in revenue between two periods. The standard formula is:
Growth Rate (%) = ((Current Period Revenue – Prior Period Revenue) / Prior Period Revenue) × 100
Step-by-Step Calculation Example
Let's look at a realistic example to understand how the numbers work:
Step 1: Identify the revenue for the previous year (e.g., $500,000 in 2022).
Step 2: Identify the revenue for the current year (e.g., $650,000 in 2023).
Step 3: Subtract the prior year from the current year to find the absolute difference. $650,000 – $500,000 = $150,000
Step 4: Divide the difference by the prior year's revenue. $150,000 / $500,000 = 0.30
Step 5: Multiply by 100 to get the percentage. 0.30 × 100 = 30% Growth
Why This Metric Matters
Tracking annual revenue growth helps business owners answer critical questions:
Validation: Is the market demand for your product increasing?
Performance: Are your sales and marketing strategies working effectively?
Trend Analysis: Are you outpacing inflation and your competitors?
Interpreting Negative Growth
If the result of the calculation is negative, it indicates a contraction in revenue. For example, if you made $1,000,000 last year and $800,000 this year, your growth rate would be -20%. While alarming, negative growth is a vital signal to audit your sales pipeline, pricing strategy, or customer retention rates immediately.