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Revenue Growth Calculator

Measure your revenue growth. Enter the previous period and current period revenue, and see the growth rate and the dollar change.

Quick answer: Revenue growth rate is (current period revenue − previous period revenue) ÷ previous period revenue, expressed as a percentage. On this calculator's defaults, revenue rising from $100,000 to $120,000 is $20,000 of change and a 20% growth rate. The number only means something once you say which period it covers — 20% in a month and 20% in a year are wildly different businesses — and it says nothing about whether that growth was profitable.
Last month, quarter, or year.
This period's revenue.
Growth rate
Change

Period-over-period growth. For comparing across different time spans, annualize the figures first.

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How to calculate revenue growth

Subtract the previous period's revenue from the current period, then divide by the previous period. Going from $100,000 to $120,000 is 20% growth (a $20,000 increase).

Growth rate = (current − previous) ÷ previous × 100

How revenue growth rate is calculated

The formula is deliberately simple: (current revenue − previous revenue) ÷ previous revenue × 100. Everything hard about this number lives outside the arithmetic — in which two periods you compare, and in what the growth cost you to get.

Worked example on this calculator's defaults

The calculator opens with a previous period of $100,000 and a current period of $120,000. The change is $120,000 − $100,000 = $20,000. The growth rate is $20,000 ÷ $100,000 × 100 = 20%.

Now notice how much that single figure hides. If those are two consecutive months, 20% monthly growth compounds to 1.20128.9× in a year — a business going from $100,000 to nearly $900,000 a month. If they are two consecutive years, the same 20% is respectable, unremarkable growth. Same formula, same output, two completely different companies. Always label the period before you quote the number to anyone, including yourself.

What the growth rate ignores

It ignores cost entirely. Revenue that grew 20% because you discounted 25% to win volume is a business getting worse while its headline number improves. Pair every growth figure with a margin figure or you will cheerfully grow yourself broke.

It also ignores seasonality, which is the most common way small businesses misread this number. A landscaper comparing May to February will show enormous growth that means nothing; the honest comparison is May against last May. For seasonal work, compare the same period year over year, and use month-over-month only to spot something breaking.

And it ignores who the revenue came from. A 20% rise driven entirely by one new client is fragile in a way the percentage cannot show you. If a single customer is more than roughly a quarter of your revenue, you are running a concentration risk that no growth rate will warn you about.

Honest rules of thumb

These are planning ranges, not benchmarks to be judged against — growth expectations vary enormously by industry, business age and how much capital is being spent to buy that growth. For an established local service business, steady annual growth in the high single digits to low double digits is typically healthy. Very young businesses routinely post triple-digit percentages simply because the starting number was small; a jump from $2,000 to $6,000 is 200% growth and roughly one extra client. Percentages get less impressive and more meaningful as the base grows.

Watch the trend rather than the reading. Three consecutive periods of decelerating growth is a more useful signal than any single figure, and it usually shows up before revenue actually falls.

The mistakes that make this number lie

The first is comparing periods of different lengths — a 31-day month against a 28-day month is a built-in 10% advantage before anything real happens. The second is mixing cash and invoices: if one period counts money received and the other counts money billed, the growth rate is measuring your paperwork, not your business. Pick one basis and hold it. The third is counting refunds inconsistently, which quietly inflates whichever period you were sloppier in.

When a spreadsheet is the honest next step

A calculator gives you one comparison between two numbers you typed. What actually tells you whether the business is growing is twelve months of revenue in a row, on a consistent basis, with margin alongside it — so you can see whether growth is accelerating, whether it is seasonal, and whether it is profitable. That is a spreadsheet job, not a calculator job. Our Small Business Bookkeeping Spreadsheet keeps monthly revenue, costs and margin in one place so the growth rate is a by-product of records you are already keeping rather than a number you reconstruct at year end.

Quick FAQ

How do you calculate revenue growth rate?

(Current period − previous period) ÷ previous period, as a percentage. A drop from the previous period shows as a negative growth rate.

What is a good revenue growth rate?

It depends on your stage and industry — steady positive growth is the goal; early-stage businesses often target much higher rates. Track it consistently period over period.

Related: cash flow calculator · profit margin calculator · break-even calculator.

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More questions

Is the Revenue Growth Calculator free to use?

Yes. The Revenue Growth Calculator is completely free, runs in your browser, and never asks for a signup, email, or download. Enter your numbers and the result updates instantly.

How accurate is this calculator?

It uses standard formulas and recalculates the moment you change a value, so the math is exact for the inputs you enter. Treat the result as a reliable planning estimate; for decisions with legal or tax consequences, confirm the figures with a qualified professional.

Does it work on my phone?

Yes. The calculator is mobile-friendly and works on any phone, tablet, or computer — there is no app to install and nothing to save.

Can I add this calculator to my own website?

Yes. Scroll to “Add this free calculator to your site” above and copy the embed snippet to place the live calculator on your blog or website for free.

Last reviewed: September 2026. Free to use, no signup — Revenue Growth Calculator by ToolWise Digital.

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