What percentage did revenue grow or decline between two periods?
Revenue growth measures the change relative to the earlier period. The starting revenue is the denominator, which makes reversing the two periods produce a different percentage.
Measuring change from the earlier revenue base
Total growth compares current revenue with starting revenue. Monthly growth is the constant compound rate that would connect those two values across the entered number of months.
The annualised result compounds that monthly rate for 12 months. It is a mathematical run-rate equivalent and does not forecast future revenue.
Difference divided by starting revenue
Total growth = (Now − Start) ÷ Start × 100Monthly growth = (Now ÷ Start)^(1 ÷ Months) − 1Annualised = (1 + Monthly growth)¹² − 1A like-for-like period comparison
The default example subtracts earlier revenue from later revenue and expresses the difference as a percentage of the earlier figure.
Absolute growth versus growth pace
The currency change shows scale; the percentage change shows pace relative to the starting base. Small starting values can create very large growth percentages.
Period length and small-base effects
Do not compare periods with different lengths or recognition rules. Monthly versus quarterly revenue is not a like-for-like growth calculation.
- Both revenue values use the same currency and accounting definition.
- The periods are directly comparable in length and seasonality.
- Acquisitions, currency translation and inflation are not adjusted.
Calculations related to revenue growth rate
The following tools examine neighbouring parts of the same calculation without changing the inputs or assumptions used above.
Quick answers
Frequently asked questions
What is the difference between total and monthly revenue growth?
Total growth measures the entire change, while monthly growth converts it into an equivalent compounded rate per month.
How is annualised growth calculated from monthly growth?
One plus the monthly rate is raised to the twelfth power, then one is subtracted.
Is annualised growth a forecast?
No. It extends the calculated monthly rate mathematically and does not model future business conditions.
Educational content only. This guide is not financial advice.
