What Is Revenue Growth?
Revenue growth measures how much a company's sales increased or decreased between two periods, expressed as a percentage. It is one of the most important indicators of business momentum, helping founders, investors, and managers gauge whether a company is expanding, stalling, or contracting. This calculator works for any currency and any time frame — month-over-month, quarter-over-quarter, or year-over-year.
How to Use This Calculator
Enter your previous revenue (the earlier period) and your current revenue (the later period). Click calculate to see the growth rate, the absolute change in money terms, and a recap of both figures. A positive percentage means growth; a negative value means a decline.
The Formula Explained
The growth rate is the change in revenue divided by the starting revenue, multiplied by 100:
$$\text{Growth \%} = \frac{\text{Current Revenue} - \text{Previous Revenue}}{\text{Previous Revenue}} \times 100$$
The previous revenue is the baseline, so a small starting figure can produce very large percentages. If previous revenue is zero, a percentage cannot be defined.
Worked Example
Suppose a SaaS startup earned $100,000 last quarter and $125,000 this quarter. The change is \(\$125{,}000 - \$100{,}000 = \$25{,}000\). Divide by the previous $100,000 to get 0.25, then multiply by 100 to get a 25% growth rate.
$$\text{Growth \%} = \frac{125{,}000 - 100{,}000}{100{,}000} \times 100 = 25\%$$
FAQ
What is a good revenue growth rate? It varies by industry and stage. Early-stage startups may target 15–20% month-over-month, while mature firms might consider 5–10% annual growth healthy.
Can the result be negative? Yes. If current revenue is lower than the previous period, the growth rate is negative, indicating a decline.
Why can't I use zero for previous revenue? Dividing by zero is undefined, so a percentage growth rate cannot be computed from a zero baseline.
