Revenue Growth Calculator

Use both, for different jobs. Month-over-month reacts fast but is dominated by seasonality — every retailer "shrinks" in January. Year-over-year compares equivalent seasons, so it isolates real trajectory; it is the number banks and buyers ask for. A useful discipline: diagnose with MoM, judge with YoY.

For established stores, 15–25% year-over-year comfortably beats overall e-commerce market growth, which has run in the high single digits to low teens. Early stores can and should grow much faster from a small base. Sustained flat or negative YoY growth while the market grows means share is being lost.

Because the base shrinks. Fall from $100,000 to $80,000 and you are down 20%; climbing back to $100,000 from $80,000 requires a $20,000 gain on the smaller base — 25%. Percentage changes are asymmetric, which is why a volatile revenue line quietly underperforms a steady one with the same average.

Use CAGR — compound annual growth rate: (ending ÷ starting)^(1/years) − 1. Growing from $150,000 to $400,000 over three years is (400/150)^(1/3) − 1 ≈ 38.7% per year. CAGR smooths out the bumpy path between endpoints, which makes it the standard figure for multi-year comparisons and pitch decks.