How to Calculate Growth Rate in Google Sheets

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Growth Rate Calculator

Absolute Change:
Percentage Growth:
CAGR (Annualized):
function calculateGrowth() { var start = parseFloat(document.getElementById('startVal').value); var end = parseFloat(document.getElementById('endVal').value); var periods = parseFloat(document.getElementById('periods').value); var resultBox = document.getElementById('gr-result-box'); if (isNaN(start) || isNaN(end) || start === 0) { alert("Please enter valid numbers. Starting value cannot be zero."); return; } var absolute = end – start; var percentage = (absolute / start) * 100; document.getElementById('absChange').innerText = absolute.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('percGrowth').innerText = percentage.toFixed(2) + "%"; if (!isNaN(periods) && periods > 0) { var cagr = (Math.pow((end / start), (1 / periods)) – 1) * 100; document.getElementById('cagrVal').innerText = cagr.toFixed(2) + "%"; } else { document.getElementById('cagrVal').innerText = "N/A (Enter periods)"; } resultBox.style.display = 'block'; }

How to Calculate Growth Rate in Google Sheets: A Complete Guide

Calculating growth rates is a fundamental skill for data analysis, finance, and marketing. Whether you are tracking website traffic, revenue growth, or investment returns, Google Sheets makes it incredibly easy to automate these calculations. In this guide, we will explore the exact formulas you need to master growth rates.

1. The Basic Growth Rate Formula

The basic growth rate represents the percentage change between two values. This is often used to compare performance between two specific points in time, such as this month vs. last month.

Formula: (New Value – Old Value) / Old Value

Step-by-Step in Google Sheets:

  1. Enter your Starting Value in cell A2.
  2. Enter your Ending Value in cell B2.
  3. In cell C2, type the formula: =(B2-A2)/A2
  4. Select cell C2 and click the % (Format as percentage) button in the toolbar.

2. Calculating Compound Annual Growth Rate (CAGR)

If you are looking at growth over several years, the basic growth rate can be misleading. CAGR provides a smoothed annual rate of growth, accounting for the effects of compounding over time.

Formula: =((End Value / Start Value)^(1 / Number of Periods)) – 1

Implementing CAGR in Google Sheets:

Assuming your data is structured as follows:

  • A2: Initial Investment ($1,000)
  • B2: Final Value ($2,500)
  • C2: Time in Years (5)

The formula in D2 would be: =(B2/A2)^(1/C2)-1

3. Using the RRI Function

Google Sheets actually has a built-in function that calculates the equivalent interest rate for an investment to grow. This is essentially a shortcut for the CAGR formula.

Syntax: =RRI(number_of_periods, present_value, future_value)

Example: =RRI(5, 1000, 2500) will yield the same result as the manual CAGR formula.

4. Common Growth Rate Scenarios

Year-over-Year (YoY) Growth

To calculate YoY growth, you subtract the previous year's value from the current year's value and divide by the previous year's value. This is crucial for seasonal businesses where comparing December to November doesn't make sense, but comparing this December to last December does.

Month-over-Month (MoM) Growth

Standard for tech startups and digital marketing, MoM growth tracks immediate momentum. Use the basic growth formula where "Old Value" is the previous month.

5. Realistic Examples

Scenario Start End Result
Website Traffic (Monthly) 5,000 7,500 50.00% Growth
Stock Portfolio (3 Years) 10,000 13,310 10.00% CAGR
Sales Revenue (YoY) 250,000 275,000 10.00% Growth

Pro Tip: Handling Errors

If your starting value is zero (common in new projects), the formula will return a #DIV/0! error. To fix this, use the IFERROR function:

=IFERROR((B2-A2)/A2, 0)

This ensures that if the math is impossible, Google Sheets displays a 0 instead of a broken error code.

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