Revenue Growth Calculator

What is Revenue Growth?

Revenue growth compares current-period revenue to a prior period and expresses the change as a percent. Label the comparison year-over-year (YoY) or quarter-over-quarter (QoQ) so board scorecards like Rule of 40 use the same period definition.

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Formula

Version v1. See methodology and the public formula repo for sources and change history.

Worked example

Using the default example inputs (Current period revenue: $1,200,000; Prior period revenue: $1,000,000; Comparison label (0=YoY, 1=QoQ): 0), Revenue Growth equals 20% (Revenue growth (YoY)). Use the same YoY label on Rule of 40 and Rule of X when those calculators are in the pack.

What good looks like

Growth targets should match how you report ARR or GAAP revenue elsewhere in the pack. Sudden definition changes (billings vs recognized revenue, or YoY vs QoQ) make trend lines misleading even when the math is correct.

Directional guidance only, not a cohort benchmark claim. Premium cohort bands appear when sample thresholds are met for your profile.

FAQ

What is Revenue Growth?

Revenue growth compares current-period revenue to a prior period and expresses the change as a percent. Label the comparison year-over-year (YoY) or quarter-over-quarter (QoQ) so board scorecards like Rule of 40 use the same period definition.

What is the Revenue Growth formula?

Revenue growth % = (Current revenue − Prior revenue) / Prior revenue × 100

YoY vs QoQ: does the formula change?

No. The calculator only changes the label on the result. Pick the comparison that matches your board narrative and use it consistently on Rule of 40 and Rule of X.

Can growth be negative?

Yes. When current revenue is below the prior period, the result is negative, common in downturns or after a large churn quarter.

Recognized revenue vs ARR growth?

This calculator accepts any currency revenue base you enter. Align the numerator and denominator with the same recognition method your finance team reports.