Businessmetrics

Revenue Growth Rate Calculator

Total and per-period growth between two revenue figures, compounded properly rather than divided.

Also called: growth rate calculator, year on year growth.

Growth rate

35%

35% growth over the whole span, which is 35% per period compounded.

Growth per period

35%

Absolute change

$350,000.00

How this is calculated

Method and background

How this is calculated

The total change is straightforward. The per-period rate takes the n-th root of the ratio, because growth compounds. 35% over three months is 10.5% a month, not 11.67%.

per_period_growth = (current/previous)^(1/periods) - 1

P: Earlier value (currency)
C: Later value (currency)
n: Periods

Worked examples

Each of these is asserted on every build. If a change to the engine ever moved one of these answers, the build would fail before the page could print it.

35% over 3 periods is 10.52% each

Revenue in the earlier period: $1,000,000.00
Revenue in the later period: $1,350,000.00
Number of periods between them: 3

Growth rate35%

compounding identity: 1.35^(1/3) - 1

Open this example

a decline

Revenue in the earlier period: $1,000,000.00
Revenue in the later period: $800,000.00
Number of periods between them: 1

Growth rate-20%

boundary

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from zero

Revenue in the earlier period: $0.00
Revenue in the later period: $100,000.00
Number of periods between them: 1

Growth rate0%

degenerate case: growth from nothing is undefined, not infinite

Open this example