Fundamentals

Revenue Growth Calculator

Calculate the percentage change in company revenue between two periods.

Aequimetra calculator

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Fundamentals
Revenue Growth Rate
Enter values and calculate to see an interpretation.
Absolute revenue change
Prior revenue
Current revenue
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How this calculator works

Revenue growth measures the change in top-line sales between two periods. It does not indicate whether the company is profitable.

Formula

Revenue Growth % = (Current Revenue − Prior Revenue) ÷ Prior Revenue × 100

Worked example

$100 million of revenue increasing to $112 million produces 12% revenue growth.

How to interpret the result

Revenue growth measures the change in top-line sales between two periods. It does not indicate whether the company is profitable.

Assumptions & limitations

Changes in acquisitions, foreign exchange, accounting periods or discontinued operations can reduce comparability. Prior revenue must be positive for a conventional percentage rate.

Practical context

When this calculator is useful

Revenue growth is useful for measuring the change in a company’s top line between two periods. It provides a simple indication of whether the business is expanding, contracting or remaining roughly stable in sales terms.

How investors commonly use it

Investors commonly compare revenue growth with EPS growth and margins to determine whether growth is translating into improved economics rather than simply larger sales volume.

What this metric does not tell you

Revenue growth does not measure profitability, cash generation or shareholder value creation. Acquisitions, currency movements, inflation and accounting changes can also affect reported growth without reflecting organic demand.

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