2 Ways to Calculate Revenue Growth Rate in Excel

The revenue keeps changing in the fast-growing business world. So many of you have to regularly calculate the revenue growth rate. But the good news is that you can calculate the revenue growth rate using Microsoft Excel. This article will teach you 2 easy methods to calculate the revenue growth rate in Excel.

Revenue & Revenue Growth Rate

1. Revenue

In the easiest language, revenue is the total income of a company in a given period of time. The income can come from either selling goods or selling services.

There are two formulas to calculate the revenue:

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2. Revenue Growth Rate

The revenue growth rate is the change of revenue value over a given period of time.

The formula to calculate the revenue growth rate:

Two Formulas to Calculate Revenue Growth Rate

The revenue growth rate can be calculated weekly, month to month, and year to year.

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Introduction to the Dataset

The dataset I am going to use for this article has 3 columns: Month (column A), Revenue(USD) (column B), and Revenue Growth Rate (column C). I am going to show the monthly change in revenue in this article. But you can also apply this method to calculate the weekly change or yearly change.

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Quickest Way to Calculate Revenue Growth Rate in Excel

I think the following formula will be the easiest one to remember for anyone.

Now Follow The Guide ↓

Step_1: Insert a new column for the revenue growth rate results.

I have used column C and named it: Revenue Growth Rate.

Step_2: Select cell C3.

Step_3: Write the following formula in cell C3:

=B3/B2-1

Formula of Calculating Revenue Growth Rate in Excel


Formula Explanation

  • B2 is the Starting Value.
  • B3 is the Ending Value.
  • I applied the formula in cell C3 because B2 is the first Starting Value and B3 is the first Ending Value. Before B2, there is no beginning value. So you can’t show any change of values in cell C2.

Step_4: Now press ENTER.

The result will come along in decimal form.

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Decimal to Percentage

Step_5: Select cell C3.

Step_6: Select the Home tab.

Step_7: Click on the β€˜%’ icon from the Number group.Β Β 

Β 

Step_8: Double-click on the Fill Handle to fill down the formula from cell C3 to C13.

Final Result ↓

Here is the outcome. Take a look.

Revenue Growth Rate Results in Excel

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Alternative Way: Use the Basic Formula to Calculate Revenue Growth Rate in Excel

The basic formula for revenue growth rate is finding the difference between the initial and final value; then dividing the value by the initial value. I am going to use this formula and add the percentages with the result in the next steps.

Now Follow The Guide ↓

Step_1: Create a new column for the results (column C).

Step_2: Select cell C3.

Step_3: Write the following formula in cell C3:

=(B3-B2)/B2

Formula to Calculate Revenue Growth Rate in Excel


Formula Explanation

  • B3 is the final revenue.
  • B2 is the starting revenue.

Step_4: Hit ENTER.

The result is in decimal form, 0.192307692. You can keep the result in this form. But usually, the rates are expressed in percentages.

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Decimal to Percentage

Step_5: Give a single click on cell C3.

Step_6: Click on the Home tab.

Step_7: From the Number group, click on the β€˜%’ icon. Β 

Converting decimal to percentage to calculate Revenue Growth Rate in Excel

You will find the result has been converted into a percentage.

Step_8: Double-click on the Fill Handle to fill down the formula.

Copying the Formula to Calculate Revenue Growth Rate in Excel

Final Result ↓

Calculating the revenue growth rate in Excel

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Conclusion

I have tried to cover everything about the revenue growth rate in this article. I hope you will find this article helpful. Please let us know if you have any questions regarding this blog in the comment section.

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