How to Use the Excel GROWTH Function – 4 Methods

 

GROWTH Function in Excel: Syntax

  • Summary

The GROWTH function is a statistical function in Excel. It is used to calculate predictive exponential growth for a given set of data. The GROWTH function uses the equation:

y = b*ex 

b is the y-intercept of the curve. And m is the slope parameter of the curve, which can also be written as:

y=b*eln(m)x

  • Syntax

GROWTH(known_ys, [known_xs], [new_xs], [const])

Introduction to Excel GROWTH Function

  • Arguments
Argument Requirement Explanation
known_ys Required The set of known y values.
known_xs Optional The set of known x values. If this parameter is not given, the formula uses (1,2,3..) as the known_xs parameter. If it is provided, it should be of the same length as the set of known_ys.
new_xs Optional It is the x values used to return the corresponding y values.
const Optional This is either a TRUE or FALSE value. TRUE indicates that the constant b is calculated normally. FALSE means that the constant b is set to 1,  and the m-values are adjusted so that y = mx. If this parameter is not given, the formula assumes the constant parameter as TRUE.
  • Return Value

The GROWTH function returns numbers in an exponential growth trend matching known data points. This function returns y values for a series of new x values that we specify using existing x values and y values.

 


Method 1 – Calculating Growth Between Two Data Ranges Using Excel GROWTH Function

Consider a dataset containing two data ranges (X Values and Y Values). Calculate the growth between these two data ranges:

Steps:

  • Enter the formula below in E5.
=GROWTH(C5:C13,B5:B13)

Calculate Growth Between Two Data Range Using Excel GROWTH Function

  • You will get the growth of X Values:


Method 2 – Applying the Excel GROWTH Function to Predict the Year-wise Revenue

The dataset contains a company’s year-wise revenue. Calculate the revenue for 2018.

Excel GROWTH Function to Predict Year-wise Revenue

Steps:

  • Enter the formula below in E13.
=GROWTH(C5:C12,B5:B12,B13)

Excel GROWTH Function to Predict Year-wise Revenue

  • Press Enter.

You will see the growth of the revenue for 2018.


Method 3 – Combining the Excel ROUND and GROWTH Functions to Predict Revenue

In Method 2, the growth for 2018 was $278,542.71. To round the value to zero decimal places:

Steps:

  • Enter the formula below in E13.
=ROUND(GROWTH(C5:C12,B5:B12,B13),0)

Combination of Excel ROUND and GROWTH Functions

The ROUND function rounds the result of the GROWTH formula ($278,542.71) to zero decimal places.

  • The approximate revenue is $278,542.


Method 4 – Applying the GROWTH Function As an Array in Excel

Calculate the growth for a range of x-values.

The dataset contains the revenue of 2010-2015. Calculate the growth for the next 3 years (2016-2018):

Apply GROWTH Function As an Array in Excel

Steps:

  • Enter the formula below in C11.
=GROWTH(C5:C10,B5:B10,B11:B13)

Apply GROWTH Function As an Array in Excel

  • You will get the growth of revenue for 2016, 2017, and 2018.

Apply GROWTH Function As an Array in Excel

Note:

In Microsoft 365, enter the GROWTH formula. In older versions, press CTRL + SHIFT + Enter to execute the formula. Here, the curly brackets indicate that the function is executed as an array.


Things to Remember

Common errors related to this function:

  • #REF! –   the [known_xs] range length is not similar to known_ys.
  • #NUM! –  the value of  known_ys. is less than or equal to zero.
  • #VALUE! –  the value of  known_ys,  [known_xs], [new_xs] is supplied as text or the values are non-numeric.

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Excel GROWTH Function: Knowledge Hub


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Hosne Ara
Hosne Ara

Hosne Ara is a materials and metallurgical engineer who loves exploring Excel and VBA programming. To her, programming is like a time-saving superhero for dealing with data, files, and the internet. She's skilled in Rhino3D, Maxsurf C++, MS Office, AutoCAD, and Excel & VBA, going beyond the basics. With a B. Sc. in Materials and Metallurgical Engineering from Bangladesh University of Engineering and Technology, she's shifted gears and now works as a content developer. In this role, she... Read Full Bio

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