Revenue Growth Capiq Formula
This represents the revenue growth from year 1 to year 2 which then must be calculated as a percentage.
Revenue growth capiq formula. 30 000 100 000 or 0 3. So if you earned 1 million in revenue last year and 2 million this year then your growth is 100 percent. What we just determined is the compound annual growth rate or the. The revenue growth formula.
Finally subtract 1 from that answer and multiply the result by 100 to find the revenue growth. Step 5 multiply the answer in step 4 by 100 for the revenue growth percentage. Step 4 divide the difference by year 1 revenue. For instance in our example the equation would be.
Why revenue growth rate is critical if a startup has a basic product or is looking for market fit then one of the top three metrics i always ask for is mom month on month revenue growth.