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Growth

Revenue growth & target planner calculator

Growth achieved between two periods, and the revenue needed next period to hit a target rate.

What this calculator does

Most growth calculators look backward: given two figures, what rate connects them. This one also looks forward, taking a target growth rate and working out the actual revenue figure needed next period to hit it, which is the more directly useful question when the goal is planning rather than reporting.

The two directions use the same underlying relationship, just solved differently. Knowing both at once means a single page can answer “how did we do” and “what do we need to do next” without switching tools.

The formula

FormulaGrowth achieved = (Current − Prior) / Prior × 100; Revenue needed = Current × (1 + target rate)

Growth achieved is the familiar percentage change between the current and prior period. The revenue needed for a target works the calculation in reverse: multiply the current period’s revenue by one plus the target growth rate, which gives the exact figure next period would need to reach to hit that target relative to the period just completed.

TermMeaning
Current period revenueRevenue for the period just completed.
Prior period revenueRevenue for the period before that, used to measure growth achieved.
Target growth rateThe growth rate to aim for next period, relative to the current period.
Growth achieved(Current − prior) ÷ prior × 100: how the just-completed period performed.

The inputs explained

FieldWhat to enter
Current period revenue ($)Revenue for the period that just finished.
Prior period revenue ($)Revenue for the period before that.
Target growth rate for next period (%)The growth rate to aim for in the next period, relative to the current one.

When to use it

Setting next quarter’s revenue target

Given this quarter’s actual result and a target growth rate for next quarter, this calculator gives the specific dollar figure that target translates to, rather than leaving the team to work backward from a percentage.

Checking whether momentum is ahead of or behind plan

Comparing growth achieved this period against the target rate set for it shows immediately whether the business is tracking ahead of or behind the plan, before the next period even starts.

Communicating a target in absolute terms

A sales or growth team often responds better to a specific revenue figure to hit than to an abstract percentage: this translates one into the other directly.

Sanity-checking an ambitious target

Seeing the exact additional revenue a stretch target requires, in dollar terms, is often a faster gut-check on feasibility than the percentage alone.

Worked examples

Every figure in the tables below is produced by this page’s own calculator at build time, so the numbers and the tool always agree. Select any row to load that scenario.

How the revenue required scales with the target rate

A fixed current-period revenue of $118,000 against a range of target growth rates for the next period.

Current period fixed at $118,000
Target growth rateGrowth achievedRevenue needed next period for targetAhead of or behind target
5%18.0%$123,900.00Ahead of the target rate
10%18.0%$129,800.00Ahead of the target rate
15%18.0%$135,700.00Ahead of the target rate
18%18.0%$139,240.00Ahead of the target rate
20%18.0%$141,600.00Behind the target rate
25%18.0%$147,500.00Behind the target rate
Growth achieved this period was 18%, so a target of 18% or lower for next period reads as already on pace, while anything above 18% (like the 20% and 25% rows) shows as behind, since the prior period’s pace alone would not be enough to reach it.

How growth achieved shifts against different starting points, target fixed at 15%

The current period held at $118,000 with a fixed 15% target, while the prior period used to measure achieved growth varies.

Current period fixed at $118,000, target 15%
Prior period revenueGrowth achievedAhead of or behind target
$90,00031.1%Ahead of the target rate
$95,00024.2%Ahead of the target rate
$100,00018.0%Ahead of the target rate
$105,00012.4%Behind the target rate
$110,0007.27%Behind the target rate
$120,000-1.67%Behind the target rate
The revenue needed next period stays fixed at $135,700 throughout, since that figure depends only on the current period and the target, not on the prior period: only the “ahead or behind” read on the period just completed changes as the comparison base shifts.

Questions

Is “revenue needed next period” a forecast?

No: it is a target implied by the growth rate you specify, not a prediction of what will actually happen. It answers “what would next period need to look like to hit this rate,” not “what will next period be.”

Why is growth achieved based on the prior period, while the target is based on the current period?

Growth achieved measures what already happened, which by definition compares the current period to the one before it. The target looks forward from where the business actually stands today, which is the current period, not the older prior one.

What does it mean to be “ahead of the target rate”?

That the growth just achieved (current versus prior) already met or exceeded the target rate set for the next period. It is a comparison of the trend so far against the goal, not a guarantee the next period will also clear it.

Can the target growth rate be negative?

Yes: useful for planning a deliberate, controlled decline, or for setting a “do not fall below this” floor during a period where flat or reduced revenue is expected.

How is this different from the plain year-over-year or period-over-period calculators?

Those calculators only measure growth that already happened. This one does that too, but adds the forward-looking half: translating a target rate into the specific revenue figure needed to hit it.

For the user or customer side of the same growth story, see the user and customer growth calculator. For the combined view of growth and profitability, use the Rule of 40 calculator.