How To Calculate Revenue Growth Rate

The revenue growth formula. Divide the total revenue growth by the revenue from the previous year. To calculate revenue growth as a percentage you subtract the previous period s revenue from the current period s revenue and then divide that number by the previous period s revenue.

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Cagr Calculator Compound Annual Growth Rate Formula

Divide the result by the first month revenue and then multiply by 100 to turn it into a percentage.

How to calculate revenue growth rate. Calculate the revenue growth rate by subtracting the first month revenue from the second month revenue. This means the company grew its total revenue by 20 percent from one year to the next. Then multiply 0 2 by 100 to get 20 percent. In this example divide 2 million by 10 million to get 0 2.

For example if you have 1000 in revenue the first month and 3500 the second month your growth rate would be 250. This represents the revenue growth from year 1 to year 2 which then must be calculated as a percentage. How to calculate total revenue growth in accounting determining a company s revenue growth rate and also understanding how that rate can be manipulated at smaller firms. Then multiply the result by 100 to calculate the total revenue growth as a percentage.

Subtract year 1 revenue from year x revenue which in this case is year 2 revenue. So if you earned 1 million in revenue last year and 2 million this year then your growth is 100 percent. The answer is 130 000 100 000 30 000.