Revenue Growth Rate Calculator

What this tells you

The growth rate is the percentage change between a starting value and an ending value. The formula is simple:

Growth Rate = (Ending Value - Starting Value) / Starting Value x 100

This calculator also returns CAGR, the compound annual growth rate, which smooths that change across the number of periods you enter. When you use 1 period, growth rate and CAGR are identical. The difference only appears once you spread the change across two or more years.

Why CAGR matters more than you think

A raw growth rate of 200% over three years sounds impressive. Stated as CAGR, that is roughly 44% per year, still strong, but a very different story for planning. CAGR is the number that lets you compare a deal that doubled in 18 months against one that tripled in four years on the same scale.

For revenue leaders, this matters most when you set targets. A board that hears "we grew 50% last year" will assume that pace continues. But if last year's growth came from a one-time expansion or a pricing change, the underlying CAGR tells you what the business actually compounds at. That is the number to forecast from.

ORM's take: a growth rate is a result, not a plan

This calculator measures what already happened. It cannot tell you which segments drove the growth, whether it is repeatable, or what next year looks like if the inputs shift.

That is what ORM's custom models do. We decompose growth by segment, product line, and cohort, then forecast forward with prescriptive recommendations on where to invest to sustain the rate. Our models target 95% accuracy. The growth rate is the scoreboard. The forecast is where the decisions get made.

Common questions

How do you calculate growth rate?

Subtract the starting value from the ending value, divide by the starting value, then multiply by 100. For periods longer than one interval, compound annual growth rate is the more honest measure, because a simple average hides volatility between periods.

What is the difference between growth rate and CAGR?

Growth rate measures change between two points. CAGR smooths that change across multiple periods into a single annualised figure. A business that grew 80% then shrank 20% has a poor CAGR and a flattering final-period growth rate.

What is a good growth rate for B2B SaaS?

It scales inversely with revenue. Early-stage companies are measured on multiples, later-stage on percentages, and the same 40% means very different things at $5M and $100M. Comparing growth rate without revenue scale is not a comparison.

Should growth rate be measured on ARR or on revenue?

ARR for a subscription business, because it isolates the recurring base from timing effects in recognised revenue. Reporting growth on recognised revenue mixes commercial performance with accounting treatment.

Why does growth rate look different month to month?

Because monthly figures amplify timing. A deal signing on the first rather than the last day of a month can swing the rate materially at smaller revenue levels, which is why quarterly and trailing-twelve-month views are the ones worth planning against.