Revenue growth calculator

Measure growth between two periods, convert it to a compound annual growth rate and project it forward.

What you enter

  • Earlier revenue – Revenue for the starting period, for example the 2023–24 financial year.
  • Latest revenue – Revenue for the most recent comparable period.
  • Years between the two figures – Use 1 for year-on-year growth. Decimals are fine, for example 0.5 for six months.
  • Years to project forward – Whole years from 0 to 20. Use 0 for no projection.

How it is calculated

Total growth = (Latest − Earlier) ÷ Earlier. CAGR = (Latest ÷ Earlier)^(1 ÷ Years) − 1. Projected revenue in n years = Latest × (1 + CAGR)^n.

Assumptions

  • Both figures are measured the same way (both ex GST, same length of period).
  • The projection assumes the same compound growth rate continues.

Limitations

  • Past growth does not guarantee future growth; markets, capacity and competition change.
  • CAGR smooths out bumpy years, so it can hide a recent slowdown. Look at each year too.

Related articles

  • Business growth strategies – The four classic ways a business can grow, how to pick the one that fits your position and appetite for risk, and how to turn a growth idea into a plan with numbers behind it.
  • Budgeting and forecasting – How to build an annual budget you will actually use, keep a rolling forecast that reflects what is really happening, and use the gap between the two to make better decisions each month.
  • Sales forecasting – How to predict next month’s and next quarter’s revenue from your pipeline and history, which forecasting method suits your business, and how to use the forecast to make hiring, stock and cash decisions.