Revenue Growth Calculator Formula

Understand the math behind the revenue growth calculator. Each variable explained with a worked example.

Use the Revenue Growth Calculator

Formulas Used

Projected Revenue

future_revenue = current_revenue * pow(1 + growth_rate / 100, years)

Total Revenue Growth

total_growth = current_revenue * pow(1 + growth_rate / 100, years) - current_revenue

Growth Multiple

growth_multiple = pow(1 + growth_rate / 100, years)

Variables

VariableDescriptionDefault
current_revenueCurrent Annual Revenue(USD)500000
growth_rateAnnual Growth Rate(%)15
yearsNumber of Years(years)5

How It Works

How to Project Revenue Growth

Formula

Projected Revenue = Current Revenue x (1 + Growth Rate/100)^Years

This formula assumes compound annual growth, where each year's growth builds on the previous year's revenue. In reality, growth rates fluctuate, so treat projections as estimates.

Worked Example

A business with $500,000 annual revenue growing at 15% per year for 5 years.

current_revenue = 500000growth_rate = 15years = 5
  1. 01Year 1: $500,000 x 1.15 = $575,000
  2. 02Year 2: $575,000 x 1.15 = $661,250
  3. 03Year 3: $661,250 x 1.15 = $760,438
  4. 04Year 4: $760,438 x 1.15 = $874,503
  5. 05Year 5: $874,503 x 1.15 = $1,005,679
  6. 06Total growth = $1,005,679 - $500,000 = $505,679
  7. 07Growth multiple = 2.01x

Ready to run the numbers?

Open Revenue Growth Calculator