How to Calculate Growth Rate Percentage in Excel

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Growth Rate Percentage Calculator

Calculation Results:

function calculateGrowthRate() { var start = parseFloat(document.getElementById('beginningValue').value); var end = parseFloat(document.getElementById('endingValue').value); var resultDiv = document.getElementById('growthResultContainer'); var output = document.getElementById('growthOutput'); var explanation = document.getElementById('growthExplanation'); if (isNaN(start) || isNaN(end)) { alert("Please enter valid numeric values for both fields."); return; } if (start === 0) { alert("Beginning value cannot be zero, as growth from zero is mathematically undefined (division by zero)."); return; } var growth = ((end – start) / Math.abs(start)) * 100; var formattedGrowth = growth.toFixed(2); resultDiv.style.display = "block"; if (growth >= 0) { resultDiv.style.backgroundColor = "#e7f4e4"; resultDiv.style.border = "1px solid #c3e6cb"; output.style.color = "#28a745"; output.innerHTML = "+" + formattedGrowth + "%"; explanation.innerHTML = "Your value increased by " + formattedGrowth + "% from the starting period."; } else { resultDiv.style.backgroundColor = "#fce8e8"; resultDiv.style.border = "1px solid #f5c6cb"; output.style.color = "#dc3545"; output.innerHTML = formattedGrowth + "%"; explanation.innerHTML = "Your value decreased by " + Math.abs(formattedGrowth) + "% from the starting period."; } }

How to Calculate Growth Rate Percentage in Excel

Calculating growth rates is a fundamental skill for financial analysis, marketing performance tracking, and inventory management. In Excel, this calculation determines the percentage change between two points in time.

The Basic Growth Rate Formula

To calculate the percentage growth rate manually, you use this formula:

((Ending Value – Beginning Value) / Beginning Value) * 100

Step-by-Step: Excel Implementation

Follow these steps to set up your growth rate calculation in an Excel spreadsheet:

  1. Input your data: Enter your starting value in cell A2 and your final value in cell B2.
  2. Enter the formula: In cell C2, type the following formula:
    =(B2-A2)/A2
  3. Apply Percentage Formatting: By default, Excel will show a decimal (e.g., 0.25). Click on the cell, go to the Home tab, and click the % (Percent Style) button in the Number group.

Excel Formula Alternative

You can also use a slightly shorter version of the formula that yields the same result:

=(B2/A2)-1

This works because B2/A2 gives you the ratio of the new value to the old value, and subtracting 1 isolates the growth component.

Example: Sales Growth Calculation

Imagine your company had the following revenue figures:

  • 2022 Revenue (Beginning Value): 50,000
  • 2023 Revenue (Ending Value): 62,500

Using the Excel formula =(62500-50000)/50000, the result is 0.25. Once you format this as a percentage, it displays as 25%.

Pro Tip: Calculating Compound Annual Growth Rate (CAGR)

If you need to calculate the growth rate over multiple years, use the RRI function or the formula: =((End_Value/Start_Value)^(1/Periods))-1. This accounts for the compounding effect over time.

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