BusCalcTools

Methodology

Revenue Growth Rate Calculator โ€” Methodology

Revenue growth rate is ((Current โˆ’ Previous) รท Previous) ร— 100. From $180,000 to $250,000 is 38.9% growth. CAGR (Compound Annual Growth Rate) smooths multi-year volatility: ((End รท Start) ^ (1 รท Years)) โˆ’ 1. Healthy growth for established small businesses is 10โ€“20% annually.

Last reviewed:

What this calculator computes

  • Month-over-month or year-over-year growth toggle
  • CAGR (Compound Annual Growth Rate) over any number of years
  • Color-coded tier vs investor benchmarks
  • Currency switches by region

Step-by-step calculation

Calculate period-over-period growth (MoM or YoY) and multi-year CAGR from any two revenue figures.

  1. Pick MoM or YoY mode

    Monthly compares this month to last month. Annual compares year-over-year.

  2. Enter current and previous revenue

    Same period type โ€” both monthly figures, or both annual figures.

  3. Optionally fill the CAGR section

    Starting revenue and number of years for a multi-year compound rate.

  4. Read growth rate and CAGR

    Period-over-period growth and the smoothed CAGR display together. Use CAGR to compare against investor benchmarks.

Assumptions and overrides

CAGR formula assumes geometric compounding from start value to end value over N years. Doesn't reflect intra-period volatility โ€” a business that grew 100% one year and -50% the next can have a benign CAGR.

Every region default on the calculator is editable. If your effective rate, fee, or threshold differs from the headline figure shown, type your own number into the field โ€” the calculator recomputes instantly without leaving this page.

Review cadence and corrections

This methodology and the underlying rate defaults are reviewed at least annually, and immediately following any change to the headline rate from IRS, HMRC, or SARS. Every substantive update is recorded on the public changelog. Spotted an error? See the corrections policy for how to report it.

See the full editorial policy for the standards every page on BusCalcTools is held to.

Use the calculator

Open the Revenue Growth Rate Calculator to put this methodology to work. Or browse other Funding & Valuation calculators.

JB

Written by

James Blanckenberg

Founder, BusCalcTools

Founder of BusCalcTools and FinnCalc. Builds practical financial calculators for small business owners and freelancers across the US, UK, and South Africa.

Editorial review by: James Blanckenberg, Founder & Editor

More about James โ†’

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