About the Revenue Forecast Calculator
What is the Revenue Forecast Calculator?
Fast growth rarely lasts forever. This revenue forecast calculator starts from your current revenue and first-year growth, then slows growth each year by a set number of percentage points until it reaches a long-term floor.
You get revenue for each year, cumulative revenue and the compound annual growth rate (CAGR) over the period.
How to use the Revenue Forecast Calculator
- Current Annual Revenue (₹) (sample: 1,00,00,000)
- Growth in Year 1 (%) (sample: 30)
- Growth Slows Each Year by (percentage points) (sample: 4)
- Long-Term Growth Floor (%) (sample: 8)
- Years to Forecast (sample: 5)
- Press Forecast Revenue (results also refresh as you type). The result card shows the Revenue in the Final Year, along with Cumulative revenue over the forecast, CAGR over the period and Growth multiple.
Formula used
Revenueₜ = Revenueₜ₋₁ × (1 + gₜ); gₜ₊₁ = max(Floor, gₜ − Decay)
- CAGR = (final revenue ÷ current revenue)^(1 ÷ years) − 1
Set the decay to 0 for constant growth.
Worked example
These are the sample values already filled in the calculator above, and the result it returns for them:
| Input | Sample value |
|---|---|
| Current Annual Revenue (₹) | 1,00,00,000 |
| Growth in Year 1 (%) | 30 |
| Growth Slows Each Year by (percentage points) | 4 |
| Long-Term Growth Floor (%) | 8 |
| Years to Forecast | 5 |
| Result | Value |
|---|---|
| Revenue in the Final Year | ₹2,68,81,939 |
| Cumulative revenue over the forecast | ₹9,98,26,187 |
| CAGR over the period | 21.87% |
| Growth multiple | 2.69× |
Tips for using the Revenue Forecast Calculator
- Build the forecast bottom-up too (customers × price) and compare it with this top-down view.
- Keep the long-term floor near nominal GDP growth for mature businesses.