Revenue Growth Calculator
Calculate your revenue growth rate and annualized CAGR, then project future revenue over 1, 2, 3, 5 and 10 years at your chosen growth rate.
Written by the CalcBundle Research & Editorial Team · Reviewed by the Quality Review Team · Transparent formulas · results are estimates, not advice. · Updated
Revenue growth
Enter a starting revenue greater than zero.
What is a revenue growth calculator?
A revenue growth calculator measures how fast your revenue is increasing (or decreasing) and projects where it could go. Growth rate is one of the most important numbers in a business — it drives valuation, hiring plans and cash needs.
How is it calculated?
- Growth % = ((Ending − Starting) ÷ Starting) × 100
- Absolute increase = Ending − Starting
- Annualized (CAGR) = ((Ending ÷ Starting)^(1 ÷ Years) − 1) × 100
- Projection = Base × (1 + rate)^years
You can measure growth over months, quarters or years; the calculator annualizes correctly for periods shorter or longer than a year.
Simple growth vs CAGR
Simple growth compares two points in time. CAGR smooths growth into a single yearly rate, which is more useful when comparing periods of different lengths or forecasting forward. Doubling revenue over two years is 100% total growth but about 41% per year compounded.
Why growth compounds — and why that matters
The most important thing about a growth rate is that it compounds, which makes the difference between rates far larger than it first appears. A business growing 20% a year doubles roughly every four years; one growing 40% a year doubles in about two. Over a decade, that seemingly modest gap separates a company that has grown sixfold from one that has grown nearly thirtyfold. This is why investors prize sustained growth so highly and why small, durable improvements in the rate are worth far more than one-off jumps in revenue — the rate applies to an ever-larger base, year after year.
Worked example
Revenue grows from $500,000 to $600,000 in a year — 20% growth and a $100,000 increase. Hold that 20% rate and the projection shows $720,000 the next year, $864,000 the year after, then about $1.04M and $1.24M — passing a million within four years. Notice that the annual dollar increase keeps rising ($100K, then $120K, then $144K) even though the percentage is constant: that widening gap between the lines is compounding made visible, and it is the whole reason a steady growth rate is so powerful.
Who should use it
- Founders tracking momentum and setting targets.
- Anyone building a simple revenue forecast.
- Investors comparing growth across companies.
Related calculators
Growth feeds valuation — try the startup valuation calculator and business valuation calculator — and translate revenue into profit with the business profit calculator.
Frequently asked questions
How do you calculate revenue growth?
Revenue growth % = ((Ending revenue − Starting revenue) ÷ Starting revenue) × 100. For example, going from $500,000 to $600,000 is 20% growth.
What is annualized (CAGR) growth?
When growth spans more than one year, the compound annual growth rate (CAGR) shows the equivalent steady yearly rate: ((Ending ÷ Starting)^(1 ÷ Years) − 1) × 100. It is the fairest way to compare growth over different periods.
How do I project future revenue?
Projected revenue = Base × (1 + growth rate)^years. Enter a base revenue and a growth rate and the calculator projects 1, 2, 3, 5 and 10 years ahead.
Can it handle declining revenue?
Yes. If ending revenue is lower than starting revenue, the growth rate is negative and projections decline accordingly.
What is a good revenue growth rate?
It depends heavily on your stage and industry. Early-stage startups are often expected to grow very fast — doubling or tripling annually in the first years — while a mature, established business growing 10–20% a year may be performing excellently for its sector. Software companies typically sustain higher growth than manufacturing or retail. Rather than chasing a universal target, compare your rate against your own history, your plan, and peers of a similar size and age.
Why can high growth still strain a business?
Because growth consumes cash before it produces it. Scaling revenue usually means hiring ahead of demand, buying more inventory, and funding longer gaps between spending and getting paid — all of which drain cash even as sales rise. This is why fast-growing companies can run out of money despite booming top-line numbers. Rapid growth needs to be planned alongside cash flow and funding, not celebrated on the revenue line alone.
Should I measure growth month-over-month or year-over-year?
Year-over-year comparisons are usually the most meaningful because they cancel out seasonality — comparing this December with last December rather than with November. Month-over-month growth is useful for spotting momentum and short-term trends, but it can be distorted by seasonal swings. Many businesses track both: month-over-month for a real-time pulse, and year-over-year for the truer underlying trend.
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Sources & methodology
- Formula
- Growth Rate = (New Revenue − Old Revenue) / Old Revenue × 100 | CAGR = (End Value / Start Value)^(1/Years) − 1
- Reviewed
- September 2026
Primary sources
- CFA Institute: Compound Annual Growth RateCAGR definition and application in financial analysis from the CFA curriculum.
- SEC Regulation S-K: Non-GAAP Growth MetricsSEC guidance on presenting revenue growth metrics in financial disclosures.
Calculation methodology is documented on our methodology page. Reviewed by the CalcBundle Quality Review Team.
Disclaimer. This calculator provides estimates for informational purposes only. Results are based on the information you enter and the assumptions used by the calculator. Actual financial, tax, business valuation, lending, marketplace or investment outcomes may differ. Consider consulting a qualified professional for decisions involving significant amounts of money.