How to Use the Exponential Growth Formula in Excel (2 Methods)

Method 1 – Predicting Exponential Growth Using 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:

    • Here, is the intercept from the y-axis, and 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= mx


Example 1: Input-only 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.

Exponential Growth Formula in Excel

  • Press Enter.

Exponential Growth Formula in Excel

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)

Exponential Growth Formula in Excel


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, use the formula:
=GROWTH(C3:C8,B3:B8,D3:D8)

where D3:D8 represents new_xs values.

Exponential Growth Formula in Excel

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.

Exponential Growth Formula in Excel


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.

Exponential Growth Formula in Excel

Read More: How to Calculate Monthly Growth Rate in Excel


Method 2 – Estimating Future Value 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:
      • represents the initial value of the quantity (e.g., initial investment).
      • is the constant annual growth rate.
      • denotes the number of time intervals.

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:

Exponential Growth Formula in Excel

  • 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.

Exponential Growth Formula in Excel

  • #VALUE!: Appears if the known_ys values or known_xs or new_xs contain non-numeric values.

Exponential Growth Formula in Excel

  • #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.

Read More: How to Calculate Revenue Growth Rate in Excel


Download Practice Workbook

You can download the practice workbook from here:


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Al Arafat Siddique
Al Arafat Siddique

Al Arafat Siddique, BSc, Naval Architecture and Marine Engineering, Bangladesh University of Engineering and Technology, has worked on the ExcelDemy project for two years. He has written over 85+ articles for ExcelDemy. Currently, he is working as a software developer. He is leading a team of six members to develop Microsoft Office Add-ins, extending Office applications to interact with office documents. Other assigned projects to his team include creating AI-based products and online conversion tools using the latest... Read Full Bio

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