1. What is Revenue Growth Percentage?

Revenue Growth Percentage measures the rate at which a company's revenue increases from one period to another. It's a key metric for assessing business performance and growth trajectory.

2. How Does the Calculator Work?

The calculator uses the revenue growth formula:

Where:

• New Revenue — Current period revenue
• Old Revenue — Previous period revenue

Explanation: The formula calculates the percentage change in revenue between two periods, showing how much revenue has grown (positive) or declined (negative).

3. Importance of Revenue Growth Calculation

Details: Revenue growth is a fundamental indicator of business health, used by investors, analysts, and management to evaluate performance, make strategic decisions, and forecast future potential.

4. Using the Calculator

Tips: Enter both new and old revenue amounts in dollars. The old revenue must be greater than zero for the calculation to work.

5. Frequently Asked Questions (FAQ)

Q1: What's considered good revenue growth?
A: This varies by industry, but generally 10-25% annual growth is strong for mature companies, while startups may aim for higher rates.

Q2: Can growth percentage be negative?
A: Yes, negative growth indicates revenue decline from the previous period.

Q3: What time periods should I compare?
A: Typically compare year-over-year (YoY) or quarter-over-quarter (QoQ) for meaningful analysis.

Q4: How does this differ from profit growth?
A: Revenue growth measures top-line sales, while profit growth accounts for expenses and shows bottom-line performance.

Q5: Should I adjust for inflation?
A: For long-term comparisons, real revenue growth (adjusted for inflation) gives a clearer picture than nominal growth.