From the previous and current revenue, compute the revenue growth rate that reflects the pace of business expansion.
Input Data
Results
At a glance:The revenue growth rate is the percentage change of current revenue relative to the previous period's revenue.
Formula
revenueGrowth = (currentRevenue − previousRevenue) / previousRevenue × 100%
$$g = \dfrac{\text{Rev}_{\text{current}} - \text{Rev}_{\text{previous}}}{\text{Rev}_{\text{previous}}} \times 100\%$$How to Use
- Enter the previous-period revenue.
- Enter the current-period revenue.
- Read the revenue growth rate.
FAQ
What is the difference between revenue growth and profit growth?
Revenue growth tracks the change in turnover (the top line); profit growth tracks the change in profit (the bottom line). They need not move together — a company can boost revenue through heavy discounts or subsidies while profit falls. Healthy growth has revenue and profit rising together, so also check gross and net margins when reading revenue growth.
What revenue growth rate is good?
No universal standard — it depends on industry, size and stage. Mature large firms with single-digit growth may be solid; high-growth start-ups or tech firms may target double-digit or multiple-times growth. Compare with peers, the broader market and your own history, and judge sustainability.
Why watch the base effect?
Growth is a percentage relative to the base period; the lower the base, the higher the rate from the same absolute increase, and vice versa. A high growth rate can simply be a 'low base' artifact, not strong business. Read the absolute amount and the multi-period trend together.
What does 'revenue up but profit flat' mean, and why pair them?
'Revenue up but profit not' means turnover grew while profit did not rise accordingly, even falling — a warning sign of growth quality. Causes include discounting to win volume (lower per-unit margin), expansion costs outpacing revenue, or a worse product mix. Sustainable quality growth has revenue and profit rising together; otherwise the growth may be 'bought' with sacrificed margin and is hard to sustain. So always check whether gross/net margins are stable or improving, whether profit growth keeps pace, and whether operating cash flow is healthy. Use the profit and gross-margin calculators alongside.
What growth rate is 'good', and should I use YoY or QoQ/MoM?
On 'how good': it depends on industry, scale, stage and the economy. A mature utility growing 3%–8% a year is fine; a high-growth tech start-up may be expected to grow double digits or multiply, and 10% could be seen as a slowdown. Compare relatively — versus peers, versus the industry average, and versus your own history (accelerating or slowing). On YoY vs QoQ/MoM: year-over-year (YoY, vs the same period last year) removes seasonality and best shows the true long-term trend; quarter-on-quarter or month-on-month (QoQ/MoM, vs the immediately prior period) captures the latest momentum and turns earlier but is distorted by seasonality (e.g. retail Q4 spikes from Christmas). Use YoY for long-term trend, QoQ/MoM for short-term momentum (seasonally adjusted or paired with YoY).
Content review: Calculatorism Finance Team. Results are for reference only; please refer to the relevant authorities for the official figures.