Revenue Growth Calculator

Because this calculator compounds a single fixed annual rate every year, the compound annual growth rate that reproduces the final projected revenue is mathematically identical to the rate you input — there's no averaging or smoothing happening, since there is only one rate to smooth. CAGR becomes genuinely useful (and different from a simple input rate) when growth varies year to year, which this tool doesn't model; here it mainly confirms the projection compounded correctly.

No — CAGR here depends only on the growth rate and the number of years, not on the current revenue figure. A company projecting from $10,000 and one projecting from $90,000,000 at the same 15% growth rate over the same 5 years both show a 15% CAGR; only the dollar-denominated outputs (Projected Revenue, Total Growth) scale with the starting figure.

The same compounding formula runs with a negative rate, projecting decline instead of growth — each year's revenue is the prior year's multiplied by (1 + a negative number), so the projected total falls below the current figure and Total Growth comes out negative. This is useful for modeling a shrinking business line or a worst-case planning scenario alongside a growth case.

That depends on your planning horizon — 3-5 years is typical for fundraising pitches or internal planning, since a single fixed growth rate becomes less credible the further out it's extrapolated. Because this is constant-rate compounding with one fixed rate, projecting 20-30 years out mostly demonstrates how dramatically small rate differences compound, rather than producing a realistic long-run business forecast.