Growth Rate Calculator
Quickly determine the percentage change between two values over time.
How to Calculate Growth Rate Between Two Numbers
Understanding growth rate is essential for analyzing business performance, population trends, or personal investment gains. The growth rate represents the percentage change from one period to another, indicating how much a value has increased or decreased relative to its starting point.
The Growth Rate Formula
Growth Rate = ((Current Value – Initial Value) / Initial Value) × 100
Step-by-Step Calculation Guide
- Subtract the Starting Value: Take your current (ending) number and subtract the original (starting) number. This gives you the absolute difference.
- Divide by Starting Value: Take that difference and divide it by the original starting number.
- Convert to Percentage: Multiply the resulting decimal by 100 to get the percentage growth rate.
Practical Examples
Example 1: Business Revenue Growth
Suppose your small business earned 40,000 in revenue last year and 52,000 this year.
1. 52,000 – 40,000 = 12,000
2. 12,000 / 40,000 = 0.30
3. 0.30 × 100 = 30% growth.
Example 2: Website Traffic Decrease
If a blog had 1,000 visitors in January but only 800 in February:
1. 800 – 1,000 = -200
2. -200 / 1,000 = -0.20
3. -0.20 × 100 = -20% growth (a 20% decrease).
Why Calculating Growth Matters
Calculating the percentage change provides context that raw numbers cannot. For example, an increase of 100 units is massive if you started with 10 (1,000% growth), but relatively small if you started with 10,000 (1% growth). This metric allows for a standardized comparison across different scales and industries.
Common Use Cases
- Financial Analysis: Tracking stock price movements or quarterly earnings.
- Marketing: Measuring the increase in social media followers or email subscribers.
- Demographics: Analyzing population changes in specific regions.
- Personal Finance: Monitoring the progress of a savings account or retirement fund.