How to use
Calculate absolute change and percentage revenue growth or decline between two comparable periods.
- Enter Previous-period revenue.
- Enter Current-period revenue.
- Calculate, then review the metric definition and comparison limits.
How it is calculated
Example
Revenue rising from 500,000 to 575,000 is an increase of 75,000 and growth of 15%.
Important notes
Compare periods with consistent length, seasonality and revenue-recognition policy; otherwise the percentage may reflect reporting differences rather than true growth.
Worked examples and interpreting results
Revenue rising from 500,000 to 575,000 is an increase of 75,000 and growth of 15%.
| Case | Calculation | Result |
|---|---|---|
| Increase | 575000 − 500000 | 75,000 |
| Growth | 75000 ÷ 500000 × 100 | 15 % |
How to check the result
Compare periods with consistent length, seasonality and revenue-recognition policy; otherwise the percentage may reflect reporting differences rather than true growth.
Frequently asked questions
What if previous revenue is zero?
A conventional growth percentage is not meaningful with a zero denominator; use the absolute change and disclose the zero base.
Should the inputs use the same period?
Yes. Use figures from the same reporting period and accounting definition so balances and flows remain comparable.
Is the result enough for a decision?
No. The metric summarizes a numerical relationship; compare it with company history, industry context, and accounting or operating policies.