About revenue forecast calculator
A forecast projects revenue forward at a steady growth rate. It helps with budgets, targets and investor discussions.
Be careful with assumptions
- Steady growth is rarely true in practice. Seasonality and competition change it.
- Test a low, a middle and a high growth rate.
- Revisit the forecast when you have new data.
A worked example
Starting at ₹4 lakh in the first month and growing 5 percent a month, revenue over 6 months is 4 + 4.2 + 4.41 + 4.63 + 4.86 + 5.10, a total of about ₹27.2 lakh. If growth were only 2 percent, the total would be about ₹25.2 lakh.
Make the forecast useful
Compare each month's forecast with the actual result and update your assumptions. A forecast that is never checked soon stops being useful.
