The method
How it is worked out
- R
- Revenue in each period
Calculate revenue growth or decline between two periods. The result updates as you type so you can compare scenarios quickly.
The method
Keep in mind
Use the calculator to compare scenarios rather than as a guaranteed forecast.
Compare revenue between two equivalent periods to quantify how quickly a business has grown or contracted. It helps with monthly reporting, investor updates and checking whether a larger sales figure represents material progress.
Subtract previous-period revenue from current-period revenue and divide by the previous amount to obtain percentage growth. The tool also shows the absolute difference. Use periods of equal length and account for seasonality, currency effects and exceptional contracts before attributing a movement to the underlying business. A growth rate alone says nothing about profit.
Compare 1 million of revenue with 1.1 million in the next comparable year. Then repeat with a weaker current period. If the business is seasonal, compare a quarter with the same quarter a year earlier rather than the preceding quarter.
Put it to work
Load an example
What moves the result most
Worked out from your figures above. Tap a row to try it.
Who uses it, and when
Founders writing investor updates, managers preparing monthly reports, and analysts checking whether a growth headline holds up when periods are compared fairly.
Mistakes worth avoiding
Questions
Calculate revenue growth or decline between two periods.
Subtract previous-period revenue from current-period revenue and divide by the previous amount to obtain percentage growth. The tool also shows the absolute difference. Use periods of equal length and account for seasonality, currency effects and exceptional contracts before attributing a movement to the underlying business. A growth rate alone says nothing about profit.
The core calculation or transformation runs in your browser. Normal website security and analytics may still record page-level events, but the tool does not need to create a public record from your inputs.
Comparing a strong quarter with the weaker quarter before it instead of the same quarter last year. Counting a one-off contract as recurring growth. Reporting growth while margins are shrinking and not mentioning it.
No. Use the result as a practical check or planning aid and verify important decisions with the relevant primary source, provider or professional advice.
Executive Insights
Calculator results are estimates based on the figures entered and are not financial, investment, legal or tax advice.