Revenue Growth Calculator

This Revenue Growth Calculator helps you quantify absolute and percentage changes between two revenue figures, compute compound annual growth rate (CAGR) across multiple periods, run forward projections using an assumed annual growth rate, and estimate the time required to reach a revenue target.

Use consistent currency units for inputs. For multi-period comparisons, CAGR is the preferred measure to annualize growth and compare performances across differing time spans. Projections assume constant annual growth and do not account for seasonality, inflation, or one-off events.

Updated Nov 5, 2025QA PASS — golden 25 / edge 120Run golden-edge-2026-01-23

Governance

Record 33be31d1450c • Reviewed by Fidamen Standards Committee

Inputs

Starting revenue (previous period)

Min 0

Ending revenue (current period)

Min 0

Number of periods between values (years)

Min 1

Assumed annual growth rate for projections (decimal, e.g., 0.10 = 10%)

Min -0.99 · Max 10

Projection horizon (years)

Min 0

Target revenue (for time-to-target)

Min 0

Results

Updates as you type

Absolute change in revenue

$20,000.00

Period percent change

2000.00%

Compound Annual Growth Rate (CAGR)

2000.00%

Projected revenue after projection years

$159,720.00

Estimated years to reach target revenue

5.3596

Output	Value	Unit
Absolute change in revenue	$20,000.00	USD
Period percent change	2000.00%	percent
Compound Annual Growth Rate (CAGR)	2000.00%	percent
Projected revenue after projection years	$159,720.00	USD
Estimated years to reach target revenue	5.3596	years

Primary result$20,000.00

Visualization

Points

Methodology

Absolute change is calculated as the difference between ending and starting revenue: ending − starting.

Period percent change is the absolute change divided by starting revenue, expressed as a percentage: ((ending − starting) / starting) × 100. This is the standard year-over-year (or period-over-period) change.

CAGR annualizes growth over multiple periods using the formula: (ending / starting)^(1 / periods) − 1, converted to percent. CAGR removes the effects of compounding to provide an average annual growth rate.

Projected revenue uses exponential growth: ending × (1 + growth_rate)^(projection_years). Time-to-target uses logarithms to solve for years in the compound growth equation: log(target / ending) / log(1 + growth_rate).

These formulas and numeric methods are consistent with standard business analytics guidance used in government and academic sources for financial metrics and projections.

F.A.Q.

What should I do if starting revenue is zero?

If starting revenue is zero, percent-change and CAGR formulas will divide by zero and are undefined. Use absolute change instead and document the context (e.g., a new product or business). When comparing across firms or periods, consider alternative metrics such as revenue per customer or customer growth.

When should I use CAGR instead of simple percent change?

Use CAGR to compare growth across different time spans or to annualize multi-year growth. For single-period changes (one year vs prior year) use period percent change. CAGR smooths volatility and assumes compounding at a constant rate.

Do projections account for inflation, seasonality, or one-time events?

No. Projections here assume a constant annual growth rate. Adjust projected_growth_rate to reflect expected inflation, seasonality, or known one-off effects, or run scenario analyses with different growth rates.

What if projected growth rate is zero or negative?

A zero growth rate yields a flat projection equal to the latest revenue. Negative growth rates model decline; time-to-target calculations require a growth rate that moves revenue toward the target. If (1 + projected_growth_rate) ≤ 0, logarithmic calculations are invalid; choose a valid growth rate or use alternative scenario modeling.

How precise are the results and how should I round them?

Results are mathematical outputs of the inputs and should be rounded to a precision appropriate for decision-making (typically whole currency units for high-level forecasts, one decimal for percent points). Keep raw inputs documented to allow recomputation with different rounding.

Can I compare revenues reported in different currencies or accounting bases?

No—always convert revenues to the same currency and ensure consistent accounting treatments (e.g., GAAP vs IFRS) before calculating growth. For cross-border comparisons, use consistent FX conversions for the period and disclose the basis.

Sources & citations

U.S. Small Business Administration — Financial management guides — https://www.sba.gov
National Institute of Standards and Technology (NIST) — Measurement science and best practices — https://www.nist.gov
Financial Accounting Standards Board (FASB) — Accounting standards — https://www.fasb.org
MIT Sloan School of Management — Research and practitioner materials on growth metrics — https://mitsloan.mit.edu
U.S. Census Bureau — Business dynamics and revenue statistics — https://www.census.gov
SEC — Financial Reporting Manual — https://www.sec.gov/corpfin/cf-manual
AICPA — American Institute of CPAs — https://www.aicpa-cima.com/

Further resources

Related tools

Versioning & Change Control

Audit record (versions, QA runs, reviewer sign-off, and evidence).

Record ID: 33be31d1450c

What changed (latest)

v1.0.0 • 2025-11-05 • MINOR

Initial publication and governance baseline.

Why: Published with reviewed formulas, unit definitions, and UX controls.

Public QA status

PASS — golden 25 + edge 120

Last run: 2026-01-23 • Run: golden-edge-2026-01-23

Engine

v1.0.0

Data

Baseline (no external datasets)

Content

v1.0.0

Governance

Last updated: Nov 5, 2025

Reviewed by: Fidamen Standards Committee (Review board)

Credentials: Internal QA

Risk level: low

Reviewer profile (entity)

Fidamen Standards Committee

Review board

Internal QA

Entity ID: https://fidamen.com/reviewers/fidamen-standards-committee#person

Semantic versioning

MAJOR: Calculation outputs can change for the same inputs (formula, rounding policy, assumptions).
MINOR: New features or fields that do not change existing outputs for the same inputs.
PATCH: Bug fixes, copy edits, or accessibility changes that do not change intended outputs except for previously incorrect cases.

Review protocol

Verify formulas and unit definitions against primary standards or datasets.
Run golden-case regression suite and edge-case suite.
Record reviewer sign-off with credentials and scope.
Document assumptions, limitations, and jurisdiction applicability.

Assumptions & limitations

Uses exact unit definitions from the Fidamen conversion library.
Internal calculations use double precision; display rounding follows the unit's configured decimal places.
Not a substitute for calibrated instruments in regulated contexts.
Jurisdiction-specific rules may require official guidance.

Change log

v1.0.0 • 2025-11-05 • MINOR

Initial publication and governance baseline.

Why: Published with reviewed formulas, unit definitions, and UX controls.

Areas: engine, content, ui • Reviewer: Fidamen Standards Committee • Entry ID: dabf3326b31d