Business formula collection
Business Growth Formulas
Growth percentages become useful when the time period, starting value and included costs are defined consistently. Pair rate changes with the absolute dollar change.
Revenue GrowthCalculate revenue growth rate, dollar change, and the revenue needed for a target growth rate.CAGRCalculate compound annual growth rate and total growth over a selected number of years.ROIMeasure return on investment and net gain from a project, campaign, or purchase.ROASCalculate return on ad spend, revenue per advertising dollar, and modeled contribution.
Use these formulas consistently
Match the period
Do not compare monthly growth with annual growth without converting the time basis and considering seasonality.
Show the starting value
A high percentage from a small base may add less absolute value than slower growth from a large base.
Include the relevant costs
ROI and ROAS answer different questions. Document which labor, platform, fulfillment and overhead costs are excluded.