How to Calculate Revenue Percent Change


Revenue represents the money a company generates from sales and is a key indicator of a company’s ability to attract customers. Revenue percent change measures the proportion by which sales increased or decreased between two periods compared to the older period’s sales. Business owners commonly calculate the percent change in revenue to measure a company’s growth and progress. The metric provides valuable information because it shows the relative size of the sales change. The higher the percentage, the stronger the improvement is.

Step 1

Subtract the older period’s revenue from the newer period’s revenue to calculate the dollar change in revenue between the two periods. A positive result means revenue increased, while a negative number indicates revenue declined. You can find a company’s revenue at the top of its income statement, or profit and loss statement.

For example, assume your business generated $1.3 million in revenue the most recent year and $1 million in revenue the year before that. Subtract $1 million from $1.3 million to get $300,000:

$1.3 million newer period revenue - $1 million older period revenue = $300,000 increase

Step 2

Divide your result by the older period’s revenue.

In the example, divide $300,000 by $1 million to get 0.3:

$300,000 increase / $1 million older period revenue = 0.3

Step 3

Multiply your result by 100 to convert it to a percentage to get the percent change in revenue.

In the example, multiply 0.3 by 100 get 30 percent:

0.3 X 100 = 30 percent increase in revenue

This means, in the most recent year, your business generated revenue that was 30 percent higher than in the previous year.


  • Calculate the revenue percent change between two consecutive or nonconsecutive periods of any size, such as months, quarters or years. For example, you might calculate the revenue percent change between the first and second months of the current year or between this year’s and last year’s third quarters.

Related Searches

Promoted By Zergnet


You May Also Like

  • How to Calculate Total Revenue

    Revenue is the total amount of money you have coming in. In your effort to calculate total revenue, you must be able...

  • How to Calculate Year on Year

    Companies, investors and others with an interest in a company often compare financial information from the same accounting period in two consecutive...

  • How to Calculate the Percent Change in Net Income

    Net income is the income generated after expenses, such as taxes and overhead, are taken into consideration. Business generally look at net...

  • Calculating Percentage Increases

    Calculating percentage increase can be done by dividing the dollar amount of change that occurred by the base amount, which should result...

  • How to Calculate Total Revenue

    Calculating total revenue is simple, as it is requires multiplying the total number of items sold by the cost of the items...

Related Searches

Check It Out

Are You Really Getting A Deal From Discount Stores?

Is DIY in your DNA? Become part of our maker community.
Submit Your Work!