Enter the number of years, months, or days between the start and end.
Compound Annual Growth Rate (CAGR):—
Total Percentage Growth:—
Absolute Difference:—
Copy this formula into Excel
=(B2/A2)^(1/5)-1
(Assuming Start Value is in A2 and End Value is in B2)
function calculateGrowth() {
var start = parseFloat(document.getElementById('startVal').value);
var end = parseFloat(document.getElementById('endVal').value);
var n = parseFloat(document.getElementById('periods').value);
var resultArea = document.getElementById('result-area');
// Validation
if (isNaN(start) || isNaN(end) || isNaN(n)) {
alert("Please enter valid numbers in all fields.");
return;
}
if (start === 0) {
alert("Starting Value cannot be zero for growth rate calculations.");
return;
}
if (n === 0) {
alert("Number of periods cannot be zero.");
return;
}
// Calculations
// 1. Absolute Difference
var diff = end – start;
// 2. Total Percentage Growth: ((End – Start) / Start) * 100
var totalGrowth = ((end – start) / start) * 100;
// 3. CAGR: ( (End / Start) ^ (1/n) ) – 1
// Note: Check for negative base with fractional exponent which returns NaN in JS
var cagr = 0;
if (start 0) {
// Complex scenario, generally not calculated via standard CAGR formula
cagr = "N/A (Sign Flip)";
} else if (start < 0 && end < 0) {
// Both negative, treat as magnitude change inverted? Standard CAGR fails here mathematically in real domain.
// We will display the mathematical result or N/A.
// Usually CAGR is used for positive asset growth.
cagr = "N/A (Negative Values)";
} else {
var base = end / start;
var exponent = 1 / n;
cagr = (Math.pow(base, exponent) – 1) * 100;
}
// Display Results
resultArea.style.display = "block";
document.getElementById('abs-diff').innerText = diff.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('total-growth').innerText = totalGrowth.toFixed(2) + "%";
if (typeof cagr === 'string') {
document.getElementById('cagr-result').innerText = cagr;
} else {
document.getElementById('cagr-result').innerText = cagr.toFixed(2) + "%";
}
// Generate Excel Formula String
// Formula: =(End/Start)^(1/N)-1
var formulaString = "=(" + end + "/" + start + ")^(1/" + n + ")-1";
document.getElementById('excel-formula').innerText = formulaString;
}
How to Calculate Growth Rate on Excel
Calculating the growth rate of an investment, revenue stream, or population dataset is a fundamental task in data analysis. While a simple percentage change tells you how much something grew in total, the Compound Annual Growth Rate (CAGR) is the industry standard for understanding how an investment grew over a specific period of time, assuming the growth was constant.
This calculator mimics the logic used in Microsoft Excel to derive these figures. Below, we break down the formulas and functions you can use directly in your spreadsheet software.
Method 1: The Manual Formula (Power Function)
The most flexible way to calculate growth rate in Excel is by using the mathematical formula for CAGR. This does not require a specific built-in Excel function and works in Google Sheets as well.
The Formula: =(Ending_Value / Starting_Value)^(1 / Number_of_Periods) - 1
Example Scenario:
Cell A1 (Start Value): 1000
Cell B1 (End Value): 2500
Cell C1 (Years): 5
To calculate the annual growth rate, you would type into cell D1: =(B1/A1)^(1/C1)-1. Don't forget to format the result cell as a Percentage to see the correct value (e.g., 20.11% instead of 0.2011).
Method 2: Using the RRI Function
Excel has a specific, lesser-known function dedicated to calculating the equivalent interest rate for the growth of an investment, called RRI.
Syntax:=RRI(nper, pv, fv)
nper: The number of periods (years, months).
pv: Present Value (Starting Value).
fv: Future Value (Ending Value).
Using the previous example, the formula would be: =RRI(5, 1000, 2500). This method is cleaner and less prone to parenthesis errors than the manual formula.
CAGR vs. Average Annual Growth Rate (AAGR)
It is critical to distinguish between CAGR and simple average growth. If your sales grew by 50% in year one and dropped by 50% in year two, your mathematical average (AAGR) is 0%. However, you actually lost money (100 -> 150 -> 75).
The CAGR formula used in this calculator correctly accounts for the compounding effect, providing a geometric mean that accurately represents the smoothed annualized return.
Common Errors to Avoid
#NUM! Error: This often happens if your Starting Value or Ending Value is negative. Standard growth rate formulas require positive values.
#DIV/0! Error: This occurs if your Starting Value is 0. Mathematical growth from zero is undefined (infinity).
Formatting: Excel outputs growth rates as decimals (e.g., 0.15). Always select the cell and press Ctrl + Shift + % to format it as a percentage.