Revenue & Sales

Basic

Revenue Growth Rate

The percentage change in revenue from one period to the next.

Formula

g = \dfrac{R_1 - R_0}{R_0} \times 100\%

Variables

gGrowth rate

R_1Current-period revenue

R_0Prior-period revenue

Example

$120k this year vs $100k last: g = 20%

Did You Know?

Sustained double-digit revenue growth is the single metric most prized by high-growth startups.

revenue growth kpi

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More in Revenue & Sales

Total Revenue

Total revenue is the selling price multiplied by the number of units sold.

Net Revenue

Net revenue is gross revenue less returns, refunds and discounts — the amount actually recognised.

Average Revenue

Average revenue is total revenue divided by units sold — equal to price per unit in a single-price market.

Marginal Revenue

Marginal revenue is the extra revenue earned from selling one additional unit.

Monthly Recurring Revenue

Monthly recurring revenue is the number of active subscribers times average revenue per user per month.

Annual Recurring Revenue

Annual recurring revenue annualises the monthly recurring revenue of a subscription business.