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How to Calculate the Percentage of Revenue Increase for This Year Vs. Last Year

Revenue measures the amount of money that a company brings in in sales. One way to measure how a company grows from year to year is the increase in the amount of revenue from year to year. However, the dollar amount of the increase does not tell the whole story; businesses should also calculate the increase as a percentage.

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Instructions

    • 1

      Subtract last year's revenue from this year's revenue to find the increase in the revenue. For example, if you earned $670,000 in revenue last year and $810,000 in this year, subtract $670,000 from $810,000 to get $140,000 as an increase in revenue.

    • 2

      Divide the increase in revenue by the revenue from the previous year to find the rate of increase. In this example, divide $140,000 by $670,000 to get 0.2090.

    • 3

      Multiply the rate of increase by 100 to find the percentage increase in revenue. Completing the example, multiply 0.2090 by 100 to find the increase equals 20.90 percent.

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