1. What is Revenue Growth Percentage?

Revenue Growth Percentage measures the rate at which a company's revenue increases from one period to another. It's a key performance indicator used to assess business growth and financial health over time.

2. How Does the Calculator Work?

The calculator uses the revenue growth percentage formula:

Where:

• \( New\ Revenue \) — Current period revenue amount
• \( Old\ Revenue \) — Previous period revenue amount

Explanation: The formula calculates the percentage change in revenue between two periods, providing insight into business growth trends.

3. Importance of Revenue Growth Calculation

Details: Revenue growth percentage is crucial for investors, stakeholders, and management to evaluate business performance, make strategic decisions, and compare growth against industry benchmarks.

4. Using the Calculator

Tips: Enter both new and old revenue amounts in dollars. Ensure old revenue is greater than zero for accurate calculation. The result shows the growth percentage with positive values indicating growth and negative values indicating decline.

5. Frequently Asked Questions (FAQ)

Q1: What is considered good revenue growth?
A: Good revenue growth varies by industry, but generally 10-15% annual growth is considered healthy for established companies, while startups may aim for higher rates.

Q2: Can revenue growth be negative?
A: Yes, negative growth indicates that revenue has decreased compared to the previous period, which may signal business challenges.

Q3: What time periods should I compare?
A: Common comparisons include year-over-year (YoY), quarter-over-quarter (QoQ), or month-over-month (MoM) depending on your analysis needs.

Q4: How does revenue growth differ from profit growth?
A: Revenue growth measures top-line income, while profit growth considers expenses and measures bottom-line earnings. A company can have revenue growth without profit growth.

Q5: What factors can affect revenue growth?
A: Market conditions, competition, pricing strategies, customer acquisition, product launches, and economic factors all influence revenue growth.