There are three methods to calculate the growth rate in Excel: base growth rate, compound growth rate (CAGR) and functional method. 1. The basic growth rate formula is: (new value - old value)/old value, which is suitable for growth calculations between two time points, such as monthly month-on-month; the operation step is to enter the formula and set the percentage format. 2. The formula for compound growth rate CAGR is: = (end value/open value)^(1/year number)-1, suitable for calculation of the average annual growth rate of multiple period data. 3. The annualized growth rate can be calculated using the GROWTH function to predict trends or the RATE function, such as =RATE(3, 0, -10000, 13000). Notes include setting percentage formatting, avoiding errors caused by old values of zero, and understanding CAGR Assuming stable growth may not be applicable to data with large fluctuations.

Calculating growth rates is actually quite common in Excel, especially in financial analysis, sales tracking or data trend judgment. If you want to know how to operate it, you actually need a few simple formulas to do it.

Basic growth rate formula: (new value - old value)/old value

This is the most commonly used calculation method, suitable for the calculation of the growth rate between two time points. For example, your sales last month were 5,000 and this month was 6,000. I want to calculate how much percentage this month has increased compared to last month.

Operation steps:

• Assume that the old value is in A1 and the new value is in B1
• Enter the formula in C1: =(B1 - A1)/A1
• Then set the cell format to "percentage" and you can see the growth rate

This method is suitable for single-term growth, such as monthly and year-on-year.

CAGR: Suitable for multi-period data

If you are calculating the average annual growth rate between years, such as the annual compound growth rate from 2020 to 2024, you need to use the CAGR formula.

formula:
=(期末值/期初值)^(1/年數(shù)) - 1

For example:
The annual income is 100,000, 2020, 150,000, and the middle is 4 years. The formula is written as: =(150000/100000)^(1/4)-1

In Excel, you can write it directly as:

 =(B5/A2)^(1/4)-1

Then set it in percentage format.

Shortcut functions: usage scenarios of GROWTH and RATE

If you don't want to write formulas yourself, Excel also provides some built-in functions to simplify operations.

• GROWTH function : suitable for predicting future values based on existing data, often used in trend analysis
• RATE function : It is often used to calculate the annualized interest rate of loans or investments, and can also be used to calculate the growth rate, especially when there are cash flow data for multiple periods.

Simple usage examples:

 =RATE(nper, pmt, pv, [fv])

where nper is the total number of periods, pv is the present value, and fv is the final value.

For example, if you invest 10,000 yuan, it will become 13,000 yuan in three years. I want to calculate the annual growth rate:

 =RATE(3, 0, -10000, 13000)

Note: Don't ignore these details

• The percentage format needs to be set manually, otherwise the result will be a decimal
• If the old value is 0, the formula will be incorrect. At this time, you need to add a judgment, such as =IF(A1=0, "N/A", (B1 - A1)/A1)
• Assuming that the compound growth rate is stable, it may not be accurate if the actual fluctuations are large.

Basically that's it. It is not difficult to calculate the growth rate using Excel, but you need to choose the right method based on the data type and needs, otherwise it is easy to make mistakes or misleading judgments.

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