Revenue Growth Rate Calculator

Calculate revenue growth rate and annualized growth (CAGR) from two revenue values

This Revenue Growth Rate Calculator is built for a single, common business question: how fast did revenue grow between a starting period and an ending period, and what does that growth look like when expressed as a yearly rate. If you have last year’s revenue and this year’s revenue, or revenue from two quarters separated by a known number of months, this page gives you the core metrics you need without turning it into a full forecasting model.

The calculator produces three practical outputs. First, it shows the total percentage growth between the two revenue numbers, which answers “How much higher (or lower) is revenue now compared to the baseline.” Second, it shows the absolute change, which helps with budgeting and planning because it is in the same units as your revenue. Third, it shows an annualized growth rate (CAGR), which is useful when your time gap is not exactly one year, or when you want to compare growth over different time spans on a fair basis.

To use it, enter the starting revenue and ending revenue for two comparable periods, then enter the time between them in months or years. Comparable periods matter. For example, compare month to month, quarter to quarter, or year to year. If you compare a seasonal month to a non-seasonal month, the growth rate may reflect seasonality rather than real underlying growth. Once you calculate, read the results as summary metrics, then use them as inputs to deeper analysis such as pipeline review, pricing changes, churn, or acquisition efficiency.

Assumptions and how to use this calculator

• Starting revenue must be greater than zero. Percentage growth is not meaningful when the baseline is zero because division by zero would be required.
• Revenues should be for comparable periods (month vs month, quarter vs quarter, year vs year). Mixing periods can create misleading results.
• The annualized growth rate (CAGR) assumes smooth compounding over the timeframe. Real revenue often fluctuates, so CAGR is a simplification for comparison, not a month-by-month prediction.
• This calculator treats revenue as a single total number. It does not separate growth drivers such as price, volume, churn, retention, or customer mix.
• Time between periods should reflect the distance between the two revenue measurements. If the start value is a monthly figure and the end value is also monthly, use the number of months between those months (not the number of days in the calendar).

Common questions

What is the difference between revenue growth percentage and CAGR?

Revenue growth percentage is the total change from start to end relative to the starting revenue. CAGR converts that total change into an equivalent yearly rate, which helps compare growth across time spans that are not exactly one year.

What if my ending revenue is lower than my starting revenue?

The calculator will show a negative growth percentage and a negative CAGR. That indicates contraction. The absolute change will also be negative, which can help quantify the scale of the drop in real terms.

Can I use this for monthly or quarterly revenue?

Yes, as long as both values represent the same type of period. Use the time unit to match the gap between measurements. For monthly revenue compared across 12 months, enter 12 months. For quarterly revenue over 2 years, enter 2 years.

Why does CAGR sometimes look smaller than the total growth rate?

Total growth is a single jump from start to end, while CAGR spreads that jump over time as a compounded annual rate. Over multi-year periods, a large total change can translate to a more modest annualized rate because it is averaged over multiple years.

When is this calculator not the right tool?

If you need to explain why revenue changed, model future revenue using multiple drivers, or account for seasonality and one-off events, this is not enough. This tool is designed for quick, comparable growth measurement between two points, not for forecasting or diagnostic decomposition.