Revenue Growth Rate Calculator
Calculate revenue growth rate between two periods, with the absolute change and an annualized rate for monthly or quarterly figures.
Last reviewed by the Radiatus Cloud team
Calculate revenue growth rate between two periods.
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Calculate revenue growth rate
Revenue growth rate measures how much revenue has increased or decreased from one period to the next, expressed as a percentage. It is calculated by subtracting the previous period's revenue from the current period's, dividing by the previous revenue, and multiplying by one hundred. Revenue rising from one hundred thousand to one hundred twenty-five thousand is a growth rate of twenty-five percent. For monthly or quarterly figures, the calculator also annualises the rate to show the equivalent yearly pace if the growth continued.
Annualising matters because a seemingly small monthly growth rate compounds into a large annual figure.
Why growth rate matters
Revenue growth is one of the first numbers investors, founders and managers look at, because it shows whether a business is expanding, stagnating or shrinking. Consistent growth signals healthy demand and effective execution, while slowing or negative growth prompts a closer look at the cause. Comparing growth across periods reveals trends and the impact of decisions.
Be mindful of the base effect: the same absolute increase represents a smaller percentage as the business grows larger, so maturing companies naturally show lower percentage growth. Compare growth rates against the same period a year earlier to account for seasonality. All calculation happens locally in your browser.
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Frequently Asked Questions
What is the revenue growth rate formula?
It is the current period revenue minus the previous period revenue, divided by the previous revenue, times one hundred.
What does annualising the rate do?
It converts a monthly or quarterly growth rate into the equivalent yearly rate, showing the pace if the growth continued at that rate.
Why does growth slow as a company grows?
The same absolute increase is a smaller percentage of a larger base, so maturing businesses naturally show lower percentage growth rates.
Should I compare to the prior period or prior year?
Comparing to the same period a year earlier removes seasonality, while comparing to the immediately prior period shows the latest momentum.
Can the growth rate be negative?
Yes. If current revenue is lower than the previous period, the growth rate is negative, indicating a decline.
Privacy & Security
Everything runs in your browser; nothing is uploaded.
How to Use
Enter previous and current period revenue.
Disclaimer: This tool is provided "as is" without warranty of any kind. Results are for educational and utility purposes.
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