Business Growth Percentage Calculator

What is Business Growth Percentage?

Business growth percentage is a measure of the increase in a company’s revenue over a specific period. It is an important indicator of the company’s financial health and performance. A positive growth percentage signifies that the business is expanding, while a negative percentage may indicate a decline in sales or revenue.

Formula

The formula to calculate business growth percentage is:

\[ \text{Growth Percentage} = \left(\frac{\text{Final Revenue} - \text{Initial Revenue}}{\text{Initial Revenue}}\right) \times 100\% \]

Where:

$\text{Growth Percentage}$ is the percentage increase in revenue
$\text{Final Revenue}$ is the revenue at the end of the period
$\text{Initial Revenue}$ is the revenue at the start of the period

Example Calculation

Let's assume the following values:

Initial Revenue = \$50,000
Final Revenue = \$75,000

Using the formula:

\[ \text{Growth Percentage} = \left(\frac{75,000 - 50,000}{50,000}\right) \times 100\% = 50\% \]

The growth percentage is 50%.