Ways To Calculate Revenue Growth Rate

So if you earned 1 million in revenue last year and 2 million this year then your growth is 100 percent.

Ways to calculate revenue growth rate. Determining the growth rate over a one year period is straightforward. This represents the revenue growth from year 1 to year 2 which then must be calculated as a percentage. Divide the result by the first month revenue and then multiply by 100 to turn it into a percentage. Calculate the revenue growth rate by subtracting the first month revenue from the second month revenue.

The revenue growth formula. Selling a product or service is the most fundamental factor in the success of any business and revenue growth rates are a direct way to assess how successfully a company is doing exactly that. 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. For example if you have 1000 in revenue the first month and 3500 the second month your growth rate would be 250.