How to Calculate Growth Percentage Formula in Excel

Calculate Growth Percentage Formula

In terms of calculation, MS Excel provides many opportunities to make our calculation process simple and efficient. In this article, I will show you how to calculate the growth percentage formula using Excel.


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Calculate Growth Percentage in Excel

For calculating growth percentage in Excel, we must have at least two values. For instance, if we have two numbers, then to find the percentage increment, we will first determine the difference between two numbers and then divide the acquired value with a shorter number among both the values. After that, we will get the answer in decimal. Then to convert this value into a percentage, we need to click on the % symbol located in the Home menu’s number section in Excel.

The syntax is something like this:

(Difference / Total) *100 = Percentage

But in MS Excel, we do not need to multiply 100. Instead, we can use this formula to find out the percentage:

Difference / Total = Percentage

But here, we will discuss the growth percentage calculation in Excel. For this, we can use the following formula:

= Total Amount * (1 + %) or

= ( Current Value / Previous Value) – 1 or

= ( Current Value  – Previous Value) / Previous Value

➥Related: Calculate Percentage Increase between 3 Numbers in Excel [Free Template]


Five ways to calculate growth percentage formula in Excel

1. Calculate Growth Percentage Between Two Numbers in Excel

To show this process, let’s assume we have a dataset of products with the sales record of the last two years. Now we will find out the sales increase in percentages between these two years using the below formula:

= (Current Sales / Previous Sales ) – 1

Calculate Growth Percentage Between Two Numbers in Excel

Step 1: Select first cell (D3) of Increase of Sales and enter the formula =(C3/B3)-1

Select first cell (D3) of Increase of Sales and enter the formula =(C3/B3)-1

Step 2: Copy down the formula up to D8.

Copy down the formula up to D8

Step 3: Right Click on it and select the Format Cells.

Right Click on it and Select the Format cells

Step 4: Select the Percentage option.

Select the Percentage option

Step 5: You can change the decimal places by changing the value of Decimal places.

You can change the decimal places by changing the value of Decimal places

Step 6: Click on the Ok button.

Click on Ok button

Step 7: All the values on the D column will be converted into percentages.

All the values on the D column will be converted into percentages

Step 8: You can convert the values easily using the following steps:

  1. Go to Home Tab
  2. Go to the Number section and select the % option. 
  3. Increase or decrease the decimal places by clicking that option.

Increase or decrease the decimal places by clicking that option


2. Calculate Growth Percentage Increased By a Specific Percentage in Excel

Here I will show the same growth percentage techniques where a specific percentage will increase it. For this, I will be using the formula below:

= Total Amount * (1+Specific Percentage (%))

For this, let’s consider a data set of a product list and its price. Now we will calculate the cost of each product after 15% VAT.

Calculate Growth Percentage Increased By a Specific Percentage in Excel

Step 1: Enter the formula =B3*(1+15%) in the C column’s first cell (C3).

Enter the formula =B3*(1+15%) in the first cell (C3) of the C column

Step 2: Copy down the formula for the other cells up to C8.

Copy down the formula for the other cells up to C8


3. Calculate Original Price by Using Growth Percentage

To get the original price or value from any percent change, we can get help from Excel. Let’s assume we have to extract the original value from any given dataset where products are listed with their percent change and current price.  Using the following formula, we will calculate the original price:

= Current Price / ( Percent + 1 )

Calculate Original Price by Using Growth Percentage

Step 1: Enter the formula =C3/(B3+1) in cell D3

Enter the formula =C3/(B3+1) in cell D3

Step 2: Copy down the formula up to D8, and you will get all the Original Prices of each product.

Copy down the formula upto D8 and you will get all the Original Price of each product


4. Calculate Growth Percentage Between Yearly Total Sales Data in Excel

Now for describing this method, let’s consider a product dataset with its yearly total sales. I will show how to calculate the growth percentage between yearly total sales data in Excel using the same formula used in method 1, but it will be row-wise. The formula will be:

= (Current Sales / Previous Sales ) – 1

Calculate Growth Percentage Between Yearly Total Sales Data in Excel

Step 1: Enter the formula =(B4-B3)/B3  in the second cell (C3) of the Growth Percentage column.

Enter the formula =(B4-B3)/B3 in the second cell (C3) of the Growth Percentage column

Step 2: Copy down the formula up to D7.

Copy down the formula up to D7

Step 3: Convert them into %.

Convert them into %.

Read More: Excel formula to calculate percentage of grand total (4 Easy Ways)


5. Calculating Final Annual Growth

In business, we need to calculate final or annual growth to measure development progress every year. Excel helps us in this way also. I will show you how to calculate the final gain by using the growth percentage in Excel.

Let’s have data on the yearly sales of any company. Now we will calculate the annual growth rate in percentage. We can calculate the final growth in two ways.

  1. Calculate Final Compound Annual Growth Rate In Excel
  2. Calculate Final Average Annual  Growth Rate In Excel

1. Calculate Compound Annually Final Growth Rate In Excel

Here I will calculate the final compound annual growth rate using this formula.

=((End Value/Start Value)^(1/Periods) -1

Calculate Compound Annually Final Growth Rate In Excel

Step 1: Enter the formula =(B8/B3)^(1/(6-1))-1 in the D5 cell. 

Enter the formula =(B8/B3)^(1/(6-1))-1 in the D5 cell

Step 2: Then it will calculate and show the result in %.

Then it will calculate and show the result in %

Step 3: Sometimes, the result may not be presented in %. Then you have to follow the following steps.

  1. Go to Home Tab
  2. Go to the Number section and select the % option.
  3. Increase or decrease the decimal places by clicking that option.

Go to the Number section and select the % option

2. Calculate Average Annually Final Growth Rate In Excel

Consider the same example above, but here we will calculate the average annually final growth rate using the below formula:

= (Last Value – First Value) / First Value

Calculate Average Annually Final Growth Rate In Excel

Step 1: First, we will calculate the Average Growth Rate in the C column using this formula =(B4-B3)/B4  in cell C4

Read More: Calculate Average Percentage in Excel 

calculate the Average Growth Rate in the C column using this formula =(B4-B3)/B4  in cell C4

Step 2:  Copy down the formula up to C8.

Copy down the formula up to C8

Step 3: Enter the formula =AVERAGE(C4:C8) in the A11 cell.

Enter the formula =AVERAGE(C4:C8) in the A11 cell

Step 4: Click on the % option to show the result in percentage.

Click on the % option to show the result in percentage

Step 5: The result will show the actual percentage value.

The result will show the actual percentage value

Conclusion

Thus we can calculate growth or increment percentage in Excel most efficiently and perfectly. Here I have discussed every formula and its implementation. I have also provided a downloadable file for practicing and better understanding. 


Further Readings

Md. Abdullah Al Murad

Md. Abdullah Al Murad

Hello! Welcome to my Profile. Currently, I am working and researching Microsoft Excel, and here I will be posting articles related to this. My last educational degree is BSc, and my program was Computer Science and Engineering from American International University-Bangladesh. I am a Computer Science graduate with a great interest in research and development. Always try to gather knowledge from various sources and try to make innovative solutions.

1 Comment
  1. Reply
    Md Sabbir Hossain Jun 16, 2021 at 5:52 PM

    Thanks for sharing. Very informative article.

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