Revenue Growth Rate Calculator
Calculate how fast revenue is growing (or declining) between two periods. Enter previous and current revenue to get growth rate %, dollar change, revenue multiple, and annualized CAGR — with a step-by-step calculation and plain-English interpretation.
Enter your revenue figures
Start with a quick preset or enter your own numbers. Add the number of periods to see annualized CAGR.
Results
Core formula
Growth Rate = ((Current − Previous) ÷ Previous) × 100
Multi-year CAGR:
CAGR = ((Current ÷ Previous)^(1÷Years) − 1) × 100
Growth rate vs CAGR
The growth rate is the simple % change between two data points. CAGR normalises that into an equivalent annual rate — useful when comparing periods of different lengths. For a single year they are identical.
How to calculate revenue growth rate
The standard formula compares two revenue figures across any period:
For multi-year comparisons, the CAGR formula removes compounding distortion:
For a deeper walkthrough — including worked examples, industry benchmarks, and common mistakes — see the How to Calculate Revenue Growth Rate guide.
Frequently asked questions
Can revenue growth rate be negative?
Yes. A negative result means current revenue is lower than previous revenue — the business experienced a revenue decline. This calculator handles negative growth correctly and flags the direction clearly.
When should I use the revenue multiple instead of the growth rate?
The revenue multiple (e.g. 3.5×) is more readable for large growth figures. A 250% growth rate is clearer expressed as 3.5× revenue. Investors and analysts often use multiples when discussing high-growth or early-stage businesses.
Does this calculator adjust for inflation?
No. This calculator uses nominal revenue figures. If you want real (inflation-adjusted) growth, divide both revenue figures by the relevant price index before entering them here.
What if previous revenue is zero?
The formula requires a non-zero previous revenue because dividing by zero is undefined. If you're measuring from a standing start, track absolute dollar growth for early periods instead of the percentage rate.
What's the difference between growth rate and CAGR?
The growth rate is the simple percentage change between two points regardless of time elapsed. CAGR normalises that into an equivalent annual rate — essential when comparing periods of different lengths. For a one-year period they produce the same result.
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Disclaimer
This calculator is for educational and planning purposes only. It does not provide accounting, tax, audit, or financial advice. Revenue growth calculations are estimates based on the values entered and do not account for seasonality, accounting adjustments, currency differences, or business-specific factors.