How to Calculate a Percentage Increase in Revenue
When calculating a percentage increase in revenue, the process is the same as calculating a percent change of anything else. Knowing the percentage increase, rather than just the the amount increased, allows you to more accurately gauge how much the revenue of a company increased, as your result will be in relative terms. Knowing percentage increases will allow you to compare revenue increases and growth across companies when you use percentages, rather than dollar amounts.
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Instructions
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1
Find revenues of a company for the two time periods you wish to find the percentage increase for. If the company you wish to find this information for is publicly traded, their revenues will be readily available by looking at their quarterly and annual financial disclosures. If the company is not publicly traded, they are not legally required to disclose this information.
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2
Subtract the revenue from Time Period A from Time Period B. These time periods can be any length of time you choose. Time Period B should be the most recent figure, with Time Period A being older.
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3
Divide your result from Step 2 by Time Period A, and then multiply 100 to find the percentage increase in revenue. This formula is better known as "change over base," as that is exactly what you are doing.
For example, if a company had revenues of $5,000 in Period A, and $7,500 in Period B, your equation will look like this:
(($7,500 - $5,000) / ($5,000)) x 100
The result in this example would be a 50 percent increase in revenue.
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