Excel Growth Rate Calculator
Calculated Metrics:
Compound Annual Growth Rate (CAGR): 0%
Total Percentage Change: 0%
Average Periodic Growth: 0%
Understanding the Growth Rate Calculation in Excel
Calculating the rate of growth between two points in time is a fundamental task for data analysts, business owners, and researchers. In Microsoft Excel, this is often handled using the RRI or RATE functions, or manually using the CAGR formula.
The Mathematical Formula
To find the periodic growth rate (CAGR) manually, we use the following logic:
Rate = ((Ending Value / Beginning Value) ^ (1 / Number of Periods)) – 1
How to use this Calculator
- Beginning Value: Enter the starting metric (e.g., website traffic at the start of the year).
- Ending Value: Enter the final metric observed at the end of the duration.
- Number of Periods: Enter the length of time (e.g., 12 months, 5 years).
Real-World Example
Imagine your SaaS startup had 500 active users in Year 1. By Year 4, you have 2,000 active users. To find your annual growth rate in Excel:
| Metric | Value |
|---|---|
| Beginning Value | 500 |
| Ending Value | 2,000 |
| Periods (Years) | 3 (Year 1 to Year 4) |
| Excel CAGR | 58.74% |
Excel Functions to Reference
If you are working directly in a spreadsheet, you can use these functions to match our calculator results:
=RRI(nper, pv, fv): Returns an equivalent interest rate for the growth of an investment.=((FV/PV)^(1/n))-1: The manual formula for CAGR.=(FV-PV)/PV: The formula for Total Percentage Change.