The **GROWTH** function is a built-in function of Microsoft Excel. Besides, we can use this function in financial statistics, regression analysis, and predicting target revenues. Furthermore, it is a worksheet function in Excel, which means we can use this function in combination with other functions in Excel. In this article, I will discuss the details of this function. Moreover, I will show you some applications of the **GROWTH **function.

**Table of Contents**Expand

**GROWTH Function in Excel: Syntax**

**Summary**

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

**y = b*e ^{x}**

^{Â }

Where **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*e ^{ln(m)x}**

**Syntax**

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

**Arguments**

Argument | Requirement | Explanation |
---|---|---|

known_ys |
Required | This is the set of known y values. |

known_xs |
Optional | This is the set of knownÂ x values. If this parameter is not given, the formula uses (1,2,3..) as the known_xs parameter. If a user provides this argument, it should be of the same length as the set of known_ys. |

new_xs |
Optional | It is the x values that are 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. Here, FALSE means that the constant b is set to 1,Â and the m-values are adjusted so that y = m. If this parameter is not given, the formula assumes the constant parameter as ^{x}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.

**Available in Version**

Office 365, Excel 2019, Excel 2016, Excel 2013, Excel 2011 for Mac, Excel 2010, Excel 2007, Excel 2003, Excel XP, Excel 2000.

**1. Calculating Growth Between Two Data Ranges Using Excel GROWTH Function**

Suppose we have a dataset containing two data ranges (**X **Values and **Y **Values). So, now, we will calculate the growth between these two data ranges using the** GROWTH **function.

**Steps:**

- First, type the formula below in cell
**E5**.

`GROWTH(C5:C13,B5:B13)`

- As a result, we will get the growth of
**X**Values as below:

**2. Applying Excel GROWTH Function to Predict Year-wise Revenue**

Often, the **GROWTH** function is used to predict revenue/sales growth yearly or monthly. For instance, we have a dataset containing a companyâ€™s year-wise revenue. Now, we will calculate the revenue for the year: *2018*.

**Steps:**

- Initially, type the following formula in cell
**E13**.

`=GROWTH(C5:C12,B5:B12,B13)`

- Next, hit
**Enter**. Lastly, you will get the growth of the revenue for*2018*.

**3. Combining Excel ROUND and GROWTH Functions to Predict Revenue**

In Method 2, we have calculated the growth of the year *2018*, which is **$278,542.71**. Later, if you want to round this revenue value to zero decimal place, you can use the **ROUND **function in Excel. So, here are the steps involved in the method.

**Steps:**

- First, type the below formula in cell
**E13**.

`=ROUND(GROWTH(C5:C12,B5:B12,B13),0)`

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

- As a consequence, the approximate revenue for the year
*2018*is**$278,542**.

**4. Applying GROWTH Function As an Array in Excel**

In this example, we will calculate the growth for a range of **x**-values. For example, we have a dataset containing the revenue from the year *2010-2015*. Now, we will calculate the growth for the next 3 years (*2016-2018*). However, you have to enter the function to complete the calculation. So, letâ€™s go through the process.

**Steps:**

- First, type the below formula in cell
**C11**.

`=GROWTH(C5:C10,B5:B10,B11:B13)`

- Finally, you will get the growth of revenue for the years:
*2016*,*2017*, and*2018*.

**Note:**

**âž¤ **In *Microsoft 365*, simply writing the **GROWTH** formula will serve the purpose. But, in other versions of Excel, you have toÂ press **CTRL + SHIFT + Enter** to execute the formula as an array function. Here, the curly brackets indicate that the function is executed as an array.

**Things to Remember**

Be careful with the syntax of the **GROWTH** function while using it. Because if you type the wrong syntax, the formula will return errors. So, letâ€™s see some common errors related to this function:

**#REF!**â€“Â When the**[known_xs]**range length is not similar to**known_ys**.**#NUM!**â€“ When the value ofÂ**known_ys**. Is less than or equal to zero.**#VALUE!**â€“ When the value ofÂ**known_ys**, Â**[known_xs]**,**[new_xs]**is supplied as text or the values are non-numeric.

**Download Practice Workbook**

You can download the practice workbook that we have used to prepare this article.

**Conclusion**

In conclusion, it is clear that the GROWTH function is very effective in calculating predictive exponential growth. In the above article, I have tried to discuss the methods elaborately. Hopefully, these methods and explanations will be enough to solve your problems. Please let me know if you have any queries.

## Excel GROWTH Function: Knowledge Hub

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