In this article, weâ€™ll discuss several examples of using the exponential growth formula in Excel. In one method weâ€™ll explain how to use one of Excelâ€™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.

**Table of Contents**Expand

**1. ****Predicting Exponential Growth Using Excel GROWTH Formula**

We can use Excelâ€™s built-in **GROWTH** function to predict *exponential growth* in the future by using existing data. Letâ€™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** â€“ A **set of known y** values that is a *required* argument.

**known_xs**â€“ 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**â€“ 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 letâ€™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.* Letâ€™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 Monthly Growth Rate in Excel

**2. ****Estimating 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.

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

**Â Â Â Â Â x =**Number of time intervals.

Letâ€™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**function.

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.**

**Read More: **How to Calculate Revenue Growth Rate in Excel

**Download Practice Workbook**

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

**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 donâ€™t forget to put them in the comment box below.

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