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Finance Calc Kit
Business

Revenue Growth Calculator

Calculate revenue growth percentage, absolute dollar increase, and compound annual growth rate (CAGR) with our free online Revenue Growth Calculator.

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Revenue growth rate

25.00%

$25,000.00 change from $100,000.00 to $125,000.00

Absolute change

$25,000.00

CAGR

25.0000%

Over 1 period

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What is revenue growth?

Revenue growth measures how much a company's sales increased over a period. Analysts use it to track business momentum, compare competitors, and forecast future performance.

For short-term month-to-month changes, try the month over month calculator. For profitability on each dollar of revenue, use the net profit margin calculator.

Revenue growth rate formula

Growth Rate=Final Revenue−Initial RevenueInitial Revenue×100%\text{Growth Rate} = \frac{\text{Final Revenue} - \text{Initial Revenue}}{\text{Initial Revenue}} \times 100\%

The absolute change equals final revenue minus initial revenue. When initial revenue is zero, the growth rate is undefined and this calculator returns 0%.

CAGR formula

CAGR=(Final RevenueInitial Revenue)1Periods−1\text{CAGR} = \left(\frac{\text{Final Revenue}}{\text{Initial Revenue}}\right)^{\frac{1}{\text{Periods}}} - 1

Compound annual growth rate (CAGR) smooths growth across multiple periods. It answers: if revenue grew at a steady rate each period, what would that rate be?

Worked example

Starting revenue of $100,000 grows to $125,000 over one period. Absolute change is $25,000 and the growth rate is 25%. Over two periods, CAGR is approximately 11.80% because $100,000 compounded at 11.80% for two years reaches $125,000.

Frequently asked questions

What is the difference between growth rate and CAGR?
Growth rate compares the starting and ending revenue in one step. CAGR spreads the same total change evenly across multiple periods, which is useful when comparing businesses over different time spans.
What is a good revenue growth rate?
Healthy growth varies by industry and company stage. Early-stage firms often grow faster than mature businesses. Compare growth to direct competitors and historical trends rather than a single benchmark.
Should I use gross or net revenue?
Use the same revenue definition consistently. Most analysts use total net sales from the income statement, excluding returns and discounts.
Can revenue growth be negative?
Yes. When final revenue is lower than initial revenue, the growth rate and absolute change are negative, indicating a revenue decline.
Can I share my inputs?
Yes. Changing fields updates the page URL for easy sharing.

Resources and references

The formulas and methods in this calculator were checked against these independent sources.