Formula
This is the compound annual growth rate across the years you enter:
Yearly growth = (ending revenue / starting revenue) ^ (1 / years) − 1
One year is the same as a simple percent change. More years spread that change into a yearly rate.
Assumptions
- The rate is constant each year.
- No extra deposits are added between the two amounts.
Worked example
Revenue from $50,000.00 to $80,000.00 in 3 years is compound yearly growth of 16.96%.
Input definitions
- Starting revenue
- The earlier amount. It must be greater than zero.
- Years
- How many years separate the two amounts, from 1 to 50.
Limitations
This is a planning estimate, not accounting, tax, payroll, or advertising advice. The currency control changes the symbol only.
Questions
How is this different from sales growth?
Sales growth compares two adjacent periods. This page compounds across multiple years.
What if revenue fell?
The yearly rate is negative.