# How to Calculate the Average Growth Rate in Excel – 3 Methods

## Definition of the Growth Rate

Growth Rate (AGR):  The Growth rate measures profits or losses, cash flow expenses, among other factors and shows whether a company is growing,.

`Growth Rate = (Ending value - Beginning value) / Beginning value`

## Method 1 – Using a Conventional Formula to Find the Average Growth Rate in Excel

This is the sample dataset.

Steps:

• Select a cell to display the result. Here, D6.
• Enter the following formula:

`=(C6-C5)/C5`

• Press Enter.

You will see the growth rate in D6.

• Drag the Fill Handle to see the result in the rest of the cells.

This is the output.

• Select D17 and enter the following formula:

`=(D6+D7+D8+D9+D10+D11+D12+D13+D14+D15)/10`

• Press Enter.

You will see the average growth rate in D17.

## Method 2 – Find the Average Growth Rate in Excel using the AVERAGE Function

Steps:

• Select a cell to display the result. Here, D6.
• Enter the following formula:

`=(C6-C5)/C5`

• Press Enter.

You will see the growth rate in D6.

• Drag the Fill Handle to see the result in the rest of the cells.

This is the output.

• Select D17 and enter the following formula:

`=AVERAGE(D6:D15)`

• Press Enter.

You will see the average growth rate in D17.

Read More: How to Calculate Class Average in Excel

## Method 3 – Using the Excel LN Function to Calculate the Average Growth Rate

Steps:

• Select a cell to display the result. Here, D15.
• Enter the following formula:

`=(1/10)*LN(C15/C5)`

• Press Enter.

You will see the growth rate in D15.

## How to Calculate the Average Annual Growth Rate in Excel

Steps:

• Select a cell to display the result. Here, D6.
• Enter the following formula:

`=(C6-C5)/C5`

• Press Enter.

You will see the annual growth rate in D6.

• Drag the Fill Handle to see the result in the rest of the cells.

This is the output.

• Select D14 and enter the following formula:

`=AVERAGE(E6:E12)`

• Press Enter.

You will see the annual average growth rate in D14.

## Things to Remember

• The first cash flow result is optional when calculating the Average Annual Growth Rate (AAGR).

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