Sales Growth Rate Calculator
Calculate period-over-period revenue growth, percentage increase in sales, and annualized CAGR for valuation work.
Period growth
Current vs previous
Annualized growth
CAGR over years
Built for valuation
Revenue momentum
Sales Growth
Compare two periods and get the percentage change.
CAGR
Annualize growth across multiple years.
Sales Growth Formula
Growth Rate = ((Current Period Sales - Previous Period Sales) / |Previous Period Sales|) x 100
Growth Rate Formula
CAGR = ((Ending Value / Beginning Value) ^ (1 / n) - 1) x 100
How to Calculate Growth Rate of a Company
Use the simple rate for recent momentum and CAGR for long-run trend quality.
Sales growth percentage
If you need to know how to calculate percentage increase in sales, the sales growth formula is straightforward. Take the difference between current and previous period sales, divide by the absolute value of the previous period, and multiply by 100.
For example, if revenue was $1,000,000 last year and $1,200,000 this year, the sales growth calculation is 20%.
Revenue growth year over year
CAGR, or compound annual growth rate, gives you the smoothed annualized sales growth rate over several years, reducing the noise of year-to-year swings.
If a company grew from $2M to $5M over 5 years, the CAGR is 20.1%, meaning revenue compounded at roughly 20% each year.
Why it matters
Understanding how to calculate growth rate helps investors evaluate whether a business is expanding, contracting, accelerating, or slowing.
- Compare performance across periods and competitors.
- Project future revenue in valuation models such as DCF.
- Spot accelerating or decelerating trends early.