In this article, we’ll discuss several examples of using the exponential growth formula in Excel. In one method we’ll explain how to use one of Excel’s built-in** statistical functions**, the **GROWTH function** with detailed examples. Another method is related to an** exponential growth **formula that is commonly used in growth calculations.

**Download Practice Workbook**

Download this practice workbook to exercise while you are reading this article.

**2 Methods of Using the Exponential Growth Formula in Excel**

**1. ****Predict Exponential Growth Using the GROWTH Function in Excel**

We can use Excel’s built-in **GROWTH function **to predict **exponential growth** in the future by using existing data. Let’s introduce the **GROWTH function **first.

**Description**: Assuming** y** is a **function **of **x**, the **GROWTH **function **calculates values of y **for a** given set of x values**. It uses an **existing set of x** and **y values** to determine the relationship among them. Then applies it to output** y values** for a series of **new x values **based on the determined relation.

The **GROWTH **function uses the following equation to **calculate **values:**y= b*m ^{x}**where

**y**is the

**intercept**from the

**y axis**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}Now let’s do some examples to understand how to use the **GROWTH **function in practice.

**Example 1: Input-only known_ys**

In this example, we just input the** known_ys** argument to illustrate the growth. Follow the guide below.

**Steps:**

- In cells
**B3:B8**we have a set of**y values**. - In cell
**D3**, type**=GROWTH(**and select cells**B3:B8**as**known_ys**argument.

- And now press
**Enter.**

Here we have the **growth** in cells **D3:D8**.

**Notes:**

We can round up the growth values by using the **ROUND **function along with the **GROWTH **function. Put the following formula in cell** D3:**

`=ROUND(GROWTH(C3:C8),0)`

**Example 2: Input known_ys and known_xs**

In this example, we used **two arguments **i.e., **known_ys **and **known_xs** in the **GROWTH function **to predict the **growth**. Let’s see if we get any difference from the previous example.

What we see from the **above screenshot **is, the growth is the **same **as that of **example 1. **

**Example 3: Input known_ys, known_xs, and new_xs**

Here we also added a **new_xs** **column **for which the **GROWTH **function will predict **growth**. In cell **E3**, put the following 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**

In the last 3 examples, we omitted the const argument. As a result, the function used the **default** **TRUE** value to predict the **exponential growth**. In the following screenshot, we showed the difference in the **growth values** for different **const arguments.**

**Read More:** **How to Calculate Annual Growth Rate in Excel (3 Methods)**

**Similar Readings:**

**How to Calculate Percentage Based on Conditional Formatting (6 Ways)****Calculate Percentage Change with Negative Numbers in Excel****How to Calculate Average Percentage Increase for Marks in Excel Formula****Add 20 Percent to a Price in Excel (2 Quick Methods)****How to Calculate Dividend Growth Rate in Excel (3 Methods)**

**2. ****Estimate Future Value Using Exponential Growth Formula in Excel **

If we have a **quantity** (population, profit, investment, etc) that **grows** at a **constant rate** during **a number of time intervals** then we can use an exponential growth formula to predict **future growth**.

**Exponential Growth (y) = a*(1+r)^x**

**Here, a = Initial value of a quantity, for example, population, profit, investment, etc.**

**r = Constant rate of growth of that quantity.**

**x = Number of time intervals.**

Let’s say we have an initial

**investment**of

**10,000 dollars**. We want to find out the value after

**4 years**at a

**constant rate of 6%**.

This is the **outcome**.

**Notes**

**Different types of Errors in the GROWTH function**

**#NUM!:**It occurs when any of the values of the**known_ys**column is**zero**or**less than zero.**

**#VALUE!:**This error appears if the**known_ys values**or**known_xs**or**new_xs**have a**non-numeric value**in it.

**#REF!:**Another error happens while using the**GROWTH**

This **#REF! **error happens if the **lengths (dimensions) **of the **known_ys** and **known_xs** values **are not equal.**

**Use the GROWTH Function as Array.**

We can use the **GROWTH function **as an array function while calculating **more **than one **y value**. For this, we just need to put the formula into the cell and then press **Ctrl + Shift + Enter.**

**Related Content: How to Calculate Revenue Growth Rate in Excel (3 Methods)**

**Conclusion**

Now, we know how to use the exponential growth formula in Excel. Hopefully, it would encourage you to use these methods more confidently. Any questions or suggestions don’t forget to put them in the comment box below.

**Related Articles**

**How to Calculate Gross Profit Margin Percentage with Formula in Excel****Calculate Reverse Percentage in Excel (4 Easy Examples)****How to Apply Percentage Formula in Excel for Marksheet (7 Applications)****Calculate Bacterial Growth Rate in Excel (2 Easy Ways)****How to Calculate Net Profit Margin Percentage in Excel**