Growth rate FAQs
What is growth rate?
Growth rate definition
Growth rate is the percentage increase (or decrease) of your brand’s growth — usually measured in terms of either new customers or revenue. You can use your recent growth rates to predict how much you stand to grow in the future.
How to calculate growth rate?
Growth rate formula
We calculate growth rate with this formula:
(Value at end of period – value at start of period) / value at start of period = growth rate as %
What is K-factor?
K-factor definition
K-factor is also known as the virality rate of your referral program. It measures referrals per member: how many new customers each referring customer brings in on average.
If K-factor is higher than 1, each customer is bringing in rapid, potentially viral growth.
If K-factor is 1, that’s a sign of sustained, steady growth.
If K-factor is higher than 0 but lower than 1, you’re gaining customers, but it’s not one new customer per referral.
How to calculate K-factor?
K-factor formula
We calculate K-factor with this formula:
Average number of referrals each customer sends X referral conversion rate = K-factor
Why use the growth rate calculator?
Benefits of the growth rate calculator
Use the growth rate calculator to easily compare your rate of overall business growth over multiple different periods, or to see specifically how much growth you’ve achieved through a referral program within a given timeframe.