1. What is Percentage Revenue Growth?

Percentage Revenue Growth measures the rate at which a company's revenue is increasing or decreasing over time. It's a key metric for assessing business performance and comparing growth rates across different periods or companies.

2. How Does the Calculator Work?

The calculator uses the percentage growth formula:

Where:

• \( Current \) — Most recent revenue amount
• \( Base \) — Original or previous revenue amount

Explanation: The formula calculates the relative change between two revenue figures, expressed as a percentage of the base value.

3. Importance of Revenue Growth Calculation

Details: Revenue growth percentage is crucial for investors, managers, and analysts to evaluate business performance, make comparisons, and forecast future trends. Consistent growth is often seen as a sign of business health and market acceptance.

4. Using the Calculator

Tips: Enter both current and base revenue amounts in dollars. The base value must be greater than zero for the calculation to work. The result shows the percentage increase (positive) or decrease (negative).

5. Frequently Asked Questions (FAQ)

Q1: What's considered good revenue growth?
A: This varies by industry, but generally 10-20% annual growth is strong for mature companies, while startups may aim for much higher rates.

Q2: How is this different from CAGR?
A: This calculates simple period-to-period growth, while CAGR (Compound Annual Growth Rate) measures smoothed annual growth over multiple periods.

Q3: Can the result be negative?
A: Yes, negative percentage indicates revenue decline compared to the base period.

Q4: Should I use gross or net revenue?
A: Typically gross revenue is used, but either can be analyzed depending on what you're trying to measure.

Q5: How often should growth be calculated?
A: Common intervals are quarterly and annually, but frequency depends on business needs and reporting requirements.