Revenue Growth Index Formula

In this example divide 2 million by 10 million to get 0 2.

Revenue growth index formula. Calculate the revenue growth rate by subtracting the first month revenue from the second month revenue. So if you earned 1 million in revenue last year and 2 million this year then your growth is 100 percent. Growth formula in excel is a statistical function. Growth formula returns the predicted exponential growth rate based on existing values given in excel.

Then multiply 0 2 by 100 to get 20 percent. Growth formula in excel. 3500 1000 1000 x 100 250. Subtract year 1 revenue from year x revenue which in this case is year 2 revenue.

It is used to determine if a hotel is gaining a fair share of revenue compared to its compset. More generally from time t k to t with t and k denoted in years compounded annual revenue growth revenue t revenue t k 1 k 1. If the gross revenue in year 2 and year 1 was 4 800 000 and 4 000 000 respectively then revenue growth rate in year 2 would be. It is a worksheet function.

Growth formula is available in all the versions of excel. Rgi your hotel s revpar hotel market revpar. Divide the total revenue growth by the revenue from the previous year. How do you calculate rgi.

The revenue growth rate formula is as follows. For a product based business the formula is revenue number of units sold x average price. For example if you have 1000 in revenue the first month and 3500 the second month your growth rate would be 250. To calculate total revenue growth subtract the most current period s revenue by the revenue number from the same period in the prior year.

Then multiply the result by 100 to calculate the total revenue growth as a percentage. Revenue growth revenue this year revenue last year 1. It is found under formulas more functions statistical growth. This represents the revenue growth from year 1 to year 2 which then must be calculated as a percentage.

For service based companies the formula is revenue number of customers x average price of services. The answer is 130 000 100 000 30 000. Divide the result by the first month revenue and then multiply by 100 to turn it into a percentage. For very early stage startups tracking weekly revenue growth will be more helpful to gauge progress.

4 800 000 4 000 000 800 000 and 800 000. Revenue growth rate total revenue for a period minus total revenue for prior period x 100.