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Revenue Growth Calculator

Current Period Revenue

Previous Period Revenue

Growth Percentage

Revenue Growth: —

Understanding Revenue Growth

Revenue growth is a key metric that measures the increase in a company's total revenue over a specific period. It's a vital indicator of business performance, market share expansion, and the effectiveness of sales and marketing strategies. Positive revenue growth typically signals a healthy and expanding business, while negative growth may require a closer examination of underlying business operations and market conditions.

Calculating revenue growth helps businesses track their progress, set realistic targets, and make informed strategic decisions. It's used for internal performance reviews, investor relations, and competitive analysis.

The Calculation Formula

The formula for calculating revenue growth percentage is straightforward. It compares the revenue of the current period to the revenue of a previous period (often the immediately preceding period or the same period in the previous year).

The formula is:

Revenue Growth (%) = [(Current Period Revenue – Previous Period Revenue) / Previous Period Revenue] * 100

Where:

Current Period Revenue: The total revenue generated during the most recent period (e.g., this quarter, this month).
Previous Period Revenue: The total revenue generated during the period immediately preceding the current period (e.g., last quarter, last month, or the same period last year).

How to Use This Calculator

To use this Revenue Growth Calculator, simply enter the total revenue for the current period and the total revenue for the previous period into the respective fields. Then, click the "Calculate Growth" button. The calculator will instantly display the percentage of revenue growth.

Interpreting the Results

Positive Percentage: Indicates that your revenue has increased from the previous period. For example, a 10% growth means your revenue is 10% higher than the previous period.
Negative Percentage: Indicates that your revenue has decreased from the previous period. For example, a -5% growth means your revenue is 5% lower.
Zero Percentage: Indicates that your revenue has remained the same.

Example Scenario

Let's say a company reported $120,000 in revenue for the current quarter and $100,000 in revenue for the previous quarter.

Current Period Revenue = $120,000
Previous Period Revenue = $100,000

Using the formula:

Revenue Growth (%) = [($120,000 – $100,000) / $100,000] * 100 Revenue Growth (%) = [$20,000 / $100,000] * 100 Revenue Growth (%) = 0.20 * 100 Revenue Growth (%) = 20%

This means the company experienced a 20% increase in revenue from the previous quarter to the current quarter.