Calculate Growth Rate
How to Calculate Growth Rate?
Growth Rate calculation involves subtracting the starting value from the ending value, dividing by the starting value, and then multiplying by 100 to get a percentage. For example, if your revenue increased from $20,000 to $25,000, your growth rate would be (($25,000 - $20,000) / $20,000) * 100 = 25%.
Growth Rate = ((Ending Value - Starting Value) / Starting Value) x 100What is Growth Rate?
Growth rate shows how much a metric increased or decreased between a starting point and an ending point. It can be used for revenue, users, customers, leads, traffic, subscriptions, costs, and other business metrics.
What this tool helps with
- Measure growth or decline between two values.
- Compare revenue, customer, traffic, or lead growth across periods.
- Check business momentum before planning budgets or targets.
- Explain performance changes in a simple percentage format.
Growth Rate example
| Starting value | Ending value | Growth rate |
|---|---|---|
| $20,000 | $25,000 | 25.00% |
| 10,000 users | 12,500 users | 25.00% |
Why it matters
Growth rate helps teams understand whether performance is expanding, shrinking, or staying flat. It turns raw changes into percentages that are easier to compare across metrics with different sizes.
For better reporting, compare growth rate with month-over-month growth, year-over-year growth, conversion rate, retention, revenue, acquisition cost, and other metrics. A single rate gives a quick signal, while a trend over several periods shows the deeper story.