# How to Use Excel GROWTH Function (4 Easy Methods)

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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.

## 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*exÂ

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*eln(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 = 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.

• 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.

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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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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