How this calculator works
Compare revenues measured over equal-length periods with the same accounting basis. Total growth measures the entire change. Compound growth spreads that change over a chosen number of periods, assuming a constant multiplier. Periods can be years, quarters or months; the reported rate uses that same period. Inflation and exchange-rate changes remain in the figures.
Formula
Total growth = final revenue / initial revenue - 1. Compound rate g = (final / initial)^(1 / n) - 1. Final = initial * (1 + g)^n. Periods n = ln(final / initial) / ln(1 + g).
Worked example
Growth from $100,000 to $125,000 is 25%. Growth from $100,000 to $121,000 over two years is 10% per year compounded. A decline from $80,000 to $60,000 is -25%.
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Frequently asked questions
Why must starting revenue be positive?
A percentage change from zero is undefined. A negative starting figure makes the usual growth interpretation misleading.
Can the final revenue be zero?
Yes. It represents a 100% decline. Recovering a starting value or period count from that case may have no unique solution.
Is compound growth the average of yearly rates?
It is the constant compounded rate connecting the endpoints. It generally differs from the arithmetic mean of the intervening rates.