Revenue Growth Calculator


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How can this revenue growth calculator help you?

This simple online tool lets you simulate future revenue growth by extrapolating the current revenue by a fixed percentage rate.

The generated forecast could help you with future business decisions, budgeting, and planning. 

By playing with the different input data, you could:

  • Predict your future revenue.

  • Estimate your business potential.

  • Calculate how long it could take to reach a specific revenue point. 

How does this calculator work?

The revenue growth predictions generated by our tool are based on the data you provide. So the more accurate information you give, the more probable result you will get.

The internal calculations are derived from the compound interest formula — the most fundamental math concept for this kind of prediction. 

The tool takes your current revenue and calculates its potential future according to the growth rate you provide.

How to calculate revenue growth prediction?

As we mentioned before, to calculate future revenue, you need to use the compound interest formula.

The formula for calculating revenue growth:

Future Revenue = ARR * (1 + annual_growth_rate)years

Where:

  • ARR - annual recurring revenue. It’s your current revenue for the last 12 months.

  • Annual_growht_rate - the percentage growth rate you expect 

  • Years - the number of years you wish to calculate the forecast.

Pros and cons of this tool

Of course, it is impossible to tell the future, but our tool tries to give the best possible result from the data it has. The accuracy depends not only on the information you provide but also on external factors. 

The longer the forecast period is, the more potential disruptions you may experience. The important thing, though, is that those fluctuations may work both for your good or bad. 

However, there is always some uncertainty about the future, but it doesn’t mean you should not make forecasts. On the contrary, it is good practice to have some predictions for your future planning. The important is just to be aware of the limitations this method has.

Similar tools

There are other tools available on Calcopolis for growth predictions. The most popular one is the MRR calculator, where you can calculate your monthly recurring revenue. 

The other helpful tool may be the sales revenue calculator, where you can estimate how many goods and services you need to sell in order to reach specific revenue.

These are just a few business calculators available here on the Calcopolis website.

 

Authors

Created by Lucas Krysiak on 2022-07-20 17:15:26 | Last review by Mike Kozminsky on 2022-07-23 13:45:09

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