Revenue Growth Rate Calculator
Revenue Growth Rate Calculator
Growth rate is one of the most-watched metrics in business — it tells you (and investors) whether revenue is trending up or down and by how much, independent of absolute size. It works for any two comparable periods: month-over-month, quarter-over-quarter, or year-over-year.
Founders and finance teams track this every reporting cycle; a negative result signals revenue decline and warrants investigation.
- Formula: Growth Rate % = (Current Revenue − Previous Revenue) ÷ Previous Revenue × 100.
- Compare like periods: comparing a holiday-quarter to a slow quarter without adjusting for seasonality can be misleading — many businesses prefer year-over-year comparisons to control for seasonal effects.
- Negative growth simply means revenue declined — the percentage shown will be negative, which is expected and correctly signals contraction.
Should I use month-over-month or year-over-year growth?
Year-over-year controls for seasonality (e.g. retail spikes in December) and is usually the more meaningful headline number; month-over-month is useful for spotting short-term momentum shifts.
What's a "good" revenue growth rate?
It depends heavily on company stage and industry — early-stage startups often target 15-20%+ month-over-month, while mature companies may consider 10-20% annual growth strong. There's no universal benchmark.
Revenue Growth Rate Calculator
Growth rate is one of the most-watched metrics in business — it tells you (and investors) whether revenue is trending up or down and by how much, independent of absolute size. It works for any two comparable periods: month-over-month, quarter-over-quarter, or year-over-year.
Founders and finance teams track this every reporting cycle; a negative result signals revenue decline and warrants investigation.
- Formula: Growth Rate % = (Current Revenue − Previous Revenue) ÷ Previous Revenue × 100.
- Compare like periods: comparing a holiday-quarter to a slow quarter without adjusting for seasonality can be misleading — many businesses prefer year-over-year comparisons to control for seasonal effects.
- Negative growth simply means revenue declined — the percentage shown will be negative, which is expected and correctly signals contraction.
Should I use month-over-month or year-over-year growth?
Year-over-year controls for seasonality (e.g. retail spikes in December) and is usually the more meaningful headline number; month-over-month is useful for spotting short-term momentum shifts.
What's a "good" revenue growth rate?
It depends heavily on company stage and industry — early-stage startups often target 15-20%+ month-over-month, while mature companies may consider 10-20% annual growth strong. There's no universal benchmark.