## 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**.

**Read More: **How to Calculate VLOOKUP AVERAGE in Excel

## 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**.

**Read More: **How to Calculate Average and Standard Deviation in Excel

## 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**.

**Read More:** How to Calculate Monthly Average from Daily Data in Excel

## Things to Remember

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

**Download Practice Workbook**

Download the practice workbook.

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