How to Calculate Revenue Growth Rate

~1 min read

Revenue Growth Rate Formula

Revenue Growth Rate = (Current Revenue - Previous Revenue) / Previous Revenue × 100

Example Calculation

A company with $800k in Q1 and $1M in Q2:

\frac{1{,}000{,}000 - 800{,}000}{800{,}000} × 100 = 25%

Growth Rate by Time Period

Use different periods depending on what you're measuring:

  • Month-over-Month (MoM): Early-stage companies tracking rapid growth
  • Quarter-over-Quarter (QoQ): Seasonal businesses; removes noise
  • Year-over-Year (YoY): Standard business performance metric; eliminates seasonality

Benchmarks by Stage

Stage Expected Growth
Pre-seed / seed 20–50%+ MoM
Series A 3–5× YoY
Growth stage 50–100% YoY
Established 10–30% YoY
Mature / public 5–15% YoY

Use the Revenue Growth Rate Calculator to compute growth, CAGR, and Rule of 40 in one step.

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