How do you forecast revenue growth?
Compound the current period figure by the growth rate for each period ahead, rather than adding a flat amount. Revenue in the final month equals the base multiplied by the growth rate raised to the number of months elapsed, and the total is the sum of that series.
Revenue Forecast Calculator formula
Final month = Base x (1 + g)^(n - 1) Total over n months = Base x ((1 + g)^n - 1) / g
Worked example: 10,000 a month growing 5% monthly reaches 17,103.39 in month 12 and totals 159,171.27 across the year.
How this works in your browser
Each month's revenue is the previous month's multiplied by one plus the growth rate, applied iteratively across the horizon, with the cumulative total summed as it goes. Compounding month on month rather than applying a flat rate to the starting figure is what makes the projection behave like real growth, and it is why the final month can be dramatically higher than the first. The model assumes a constant rate and no seasonality, which is the assumption worth stress-testing rather than the arithmetic. Everything is computed locally.
Who uses Revenue Forecast Calculator
Business planning
See where current growth leads over the next quarter or year.
Testing a target
Work out what monthly growth a revenue goal actually demands.
Investor and lender conversations
Produce a defensible projection with the assumptions stated.
Sensitivity checking
Compare optimistic and pessimistic rates to see the spread of outcomes.
Frequently asked questions
What growth rate should I use?
Your own recent history, not an aspiration. Take the last several months of actual revenue and work out the average month-on-month change. A forecast built on a rate you have never achieved tells you what you hope for rather than what is likely.
Why does a small rate change move the total so much?
Because growth compounds. Each month's increase applies to a base that already includes every previous increase, so the gap between 3% and 5% widens month after month rather than staying constant. That sensitivity is exactly why running a pessimistic case alongside an optimistic one is worth the extra minute.
Does this account for seasonality?
No, and that is its main limitation. It applies one steady rate every month, whereas most businesses have busy and quiet periods. If your revenue swings seasonally, forecast a full year at a time so the peaks and troughs average out rather than reading any single month as a prediction.
Is this a forecast or a projection?
A projection: it shows what happens if the rate you entered holds. A forecast, properly speaking, weighs pipeline, seasonality and known changes. Treat the output as a way to test assumptions rather than as a prediction of what will occur.
Are my figures sent anywhere?
No. The calculation runs in your browser, so your revenue never leaves your device.