Method 1 – Using the Excel GROWTH Formula
Description
 The GROWTH function in Excel predicts future exponential growth based on existing data.
 Given a set of x and y values, it calculates the relationship between them and uses it to predict y values for new x values.
 The formula for GROWTH is:
$y=b⋅m_{x}$
 Here, $y$ is the intercept from the yaxis, and $m$ is the slope of the curve.
Syntax
=GROWTH(known_ys, [known_xs],[new_xs],const )
Here:
known_ys – A set of known y values that is a required argument.
known_xs– A set of known x values of the same dimension as of the set of y values and it is an optional argument.
new_xs A set of new x values for which the function should calculate the predicted y values. It is also optional. If not given the function assumes it as the same length as the set of known x values.
const– If TRUE or omitted, b is calculated normally.
If FALSE, b is set to 1 and the equation is adjusted to y= m^{x}
Example 1 – Inputonly known_ys
Steps
 Suppose we have y values in cells B3:B8.
 In cell D3, enter =GROWTH(and select cells B3:B8 as known_ys argument).
 Press Enter.
We have the growth in cells D3:D8.
Notes
You can round these values using the following formula in cell D3:
=ROUND(GROWTH(C3:C8),0)
Example 2 – Input known_ys and known_xs
 Use both known_ys and known_xs arguments in the GROWTH function.
 The growth will be the same as in Example 1.
Example 3 – Input known_ys, known_xs, and new_xs
 Add a new_xs column for prediction.
 In cell E3, insert the formula:
=GROWTH(C3:C8,B3:B8,D3:D8)
where D3:D8 represents new_xs values.
As we described earlier, the GROWTH function predicts values based on the relationship (equation) is found from the existing data, which is illustrated in the following screenshot.
Example 4 – Input known_ys, known_xs, new_xs, and const
 Omitting the const argument defaults to TRUE.
 The following screenshot shows growth values for different const arguments.
Read More: How to Calculate Monthly Growth Rate in Excel
Method 2 – Using Exponential Growth Formula in Excel
Description
 If we have a quantity (such as population, profit, or investment) that grows at a constant rate over time intervals, we can use the exponential growth formula to predict future values.
 The formula for exponential growth is:
(y) = a*(1+r)^x
 Here:
 $a$ represents the initial value of the quantity (e.g., initial investment).
 $r$ is the constant annual growth rate.
 $x$ denotes the number of time intervals.
 Here:
Example

 Suppose we have an initial investment of $10,000.
 We want to find the value after 4 years at a constant growth rate of 6%.
 Applying the formula:
$y=10,000*(1+0.06_{4}$
 The outcome will give us the predicted value.
Notes
Different types of Errors in the GROWTH function
 #NUM!: Occurs when any known_ys value is zero or less than zero.
 #VALUE!: Appears if the known_ys values or known_xs or new_xs contain nonnumeric values.
 #REF!: Is another error that can occur while using the GROWTH function.
This error occurs when the lengths (dimensions) of known_ys and known_xs values are not equal.
Using the GROWTH Function as an Array
 To calculate multiple y values, use the GROWTH function as an array:
 Enter the formula in a cell and press Ctrl + Shift + Enter.
Download Practice Workbook
You can download the practice workbook from here:
Related Articles
 How to Calculate Dividend Growth Rate in Excel
 Growth Formula in Excel with Negative Numbers
 How to Calculate Sales Growth over 3 Years in Excel
 How to Calculate Sales Growth over 5 Years in Excel
 How to Calculate Sales Growth Percentage in Excel
 How to Calculate Year over Year Growth with Formula in Excel
 Growth Over Last Year Formula in Excel
 How to Calculate Growth Percentage with Formula in Excel
<< Go Back to Growth Formula In Excel  Excel Formulas for Finance  Excel for Finance  Learn Excel
Get FREE Advanced Excel Exercises with Solutions!