Revenue Growth Calculator

Paste your revenue for each period (months, quarters or years) to see the growth from one period to the next, the overall growth and the compound growth rate.

Revenue growth formulas

Growth % (period) = (This period − Previous period) ÷ Previous period × 100 Compound growth = (Last ÷ First)^(1 ÷ number of periods) − 1 Annualized growth = (1 + monthly or quarterly growth)^(12 or 4) − 1

Example

Revenue over five years: ₹12 lakh, ₹14.5 lakh, ₹13.8 lakh, ₹17.2 lakh and ₹20.5 lakh. Total growth is 70.8%. The compound annual growth rate (CAGR) over the four year-on-year steps is 14.3%. The simple average of the yearly growth rates is about 15%, a little higher because averages ignore compounding and are pulled around by the dip in year 3.

Average growth vs CAGR

The average of period growth rates is easy to compute but misleading when growth is volatile. For example, +50% followed by −50% averages 0%, yet you have lost 25%. CAGR uses only the start and end values and gives the steady rate that connects them, so investors and analysts prefer it.

Month-on-month (MoM), quarter-on-quarter (QoQ) and year-on-year (YoY)

Choose the period type to annualize compound growth. A 3% MoM growth rate compounds to about 42.6% a year. For seasonal businesses, compare each month with the same month last year (YoY) rather than with the previous month.

Frequently asked questions

How do I calculate YoY revenue growth?

Subtract last year’s revenue from this year’s, divide by last year’s revenue and multiply by 100. Enter the two figures above to get it instantly.

What is a good revenue growth rate?

Mature businesses often grow 5–10% a year, roughly with inflation plus market growth. Early-stage startups may target 50–100% or more a year.

Results are for planning and information only and are not accounting or financial advice. Check important figures with your accountant.