# Revenue Growth Calculator

URL: https://speedycalculator.com/calculators/finance/revenue-growth/
Last updated: 2026-10-25

> The revenue growth calculator works out the percentage growth in revenue between two periods and the compound annual growth rate (CAGR) over several years.

## Inputs

- Previous period revenue
- Current period revenue
- Revenue several years ago
- Number of years between them

## Results

- Revenue growth
- Change in revenue
- Compound annual growth rate

## Formula

```
Revenue growth = (current − previous) ÷ previous × 100
CAGR = (ending ÷ beginning)^(1/years) − 1
```

## Explanation

Investors look at revenue growth alongside margins: fast growth with shrinking margins may not create value. Use CAGR to compare growth over different time spans.

### How to use the Revenue Growth Calculator

- **Previous period revenue**
- **Current period revenue**
- **Revenue several years ago**
- **Number of years between them**

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Enter the previous and current period revenue, and optionally the revenue several years ago.

### Tips

- Use consistent periods (a year or a quarter) for flow figures and period-end values for balances.
- Average opening and closing balances when a ratio mixes a flow with a stock.
- Benchmark against competitors in the same industry.
- Read the ratio together with others – profitability, liquidity and efficiency tell different stories.

### Common mistakes to avoid

- Using sales instead of cost of goods sold for inventory ratios.
- Mixing gross, operating and net profit.
- Ignoring one-off items that distort a single year.

### Inputs explained

FieldWhat to enterPrevious period revenueAmount in your currencyCurrent period revenueAmount in your currencyRevenue several years agoAmount in your currencyNumber of years between themA number

### What each result means

- **Revenue growth** = ([Current period revenue] - [Previous period revenue])÷[Previous period revenue]×100
- **Change in revenue** = [Current period revenue] - [Previous period revenue]
- **Compound annual growth rate** = (([Current period revenue]÷[Revenue several years ago])^(1÷[Number of years between them]) - 1)×100

### Example values

How the main result changes when **Previous period revenue** changes and everything else stays at the example values above:

Previous period revenueRevenue growth (%)1,000,0001401,500,000602,000,000202,500,000-43,000,000-204,000,000-40

## Worked example

Inputs — Previous period revenue: $2,000,000; Current period revenue: $2,400,000; Revenue several years ago: $1,200,000; Number of years between them: 4.

Results — **Revenue growth = 20 %**; Change in revenue = $400,000.00; Compound annual growth rate = 18.92 %.

## FAQ

**How do I calculate revenue growth?**
(Current − previous) ÷ previous × 100.

**What is a good revenue growth rate?**
It depends on company size and industry; 10–20% is strong for established firms.

**Why use CAGR?**
It smooths out uneven yearly growth.

**What formula does the Revenue Growth Calculator use?**
Revenue growth = (current − previous) ÷ previous × 100.


## Sources

- [Corporate Finance Institute – financial ratios](https://corporatefinanceinstitute.com/)