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.

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**Introduction to Excel GROWTH Function**

**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}**

^{ }

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 known 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, 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.

**4 Examples to Use Excel GROWTH Function**

**1. Calculate Growth Between Two Data Range 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 below formula in
**Cell E5**.

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

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

**2. 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 company’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**.

**Similar Readings**

**How to Use Excel NORMDIST Function (2 Applications)****Use TREND Function in Excel (3 Examples)****How to Use INTERCEPT Function in Excel****Use QUARTILE Function in Excel (5 Suitable Examples)****How to Use Excel SLOPE Function (5 Quick Examples)**

**3. Combination of Excel ROUND and GROWTH Functions**

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 place.

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

**4. Apply 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 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, let’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 year:
**2016**,**2017**, and**2018**.

**Note:**

**➤ **In **Microsoft 365**, simply writing the **GROWTH** formula will serve the purpose. But, in other versions of Excel, you have to press **CTRL + SHIFT + Enter** to execute the formula as an array function. Here, the curly brackets indicate about 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, let’s see some common errors related to this function:

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

**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.