The necessity to calculate growth rate is unavoidable, especially when you are analyzing data for a long period of time. Growth rate can be calculated by population, GDP, income, fertility, mortality, etc. for a specific area, city, or country. Microsoft Excel has paved some easy ways for us to calculate population growth. In this article, we will learn how to calculate the population growth rate in Excel with 2 effective methods.

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## What Is Population Growth Rate?

Population growth rate refers to the annual average rate of change in population size. It can be for a given country, territory, or geographic area, during a specified period of time. It illustrates the ratio between the increase and the total population for that year. Afterward, it is usually multiplied by 100 to get the ratio in percentage.

## Average Annual Growth Rate (AAGR) vs. Compound Annual Growth Rate (CAGR)

The process of calculating the population growth rate is possible in the following two ways:

**1. Average Annual Growth Rate (AAGR)**

**2. Compound Annual Growth Rate (CAGR)**

Though both of them calculate annual growth rates, there is a thin line difference between them. **AAGR** completely avoids the impact of compounding that occurs over the years. On the other hand, **CAGR** strictly takes into account the compounding effect.

Another difference is,** AAGR** helps us to know the overall growth trend, while **CAGR** benefits us with determining possible errors.

## How to Calculate Population Growth Rate in Excel: 2 Effective Methods

We have taken a sample dataset to describe the process in this tutorial. This dataset shows the **Total Population** over the **Years **2011-2020 in columns** B **and **C**.

Let us find the population growth rate in **column D** following the methods below.

### 1. Calculate Average Annual Population Growth Rate

In this first method, we will find out the average annual growth rate of the population. For this, we need to find the growth rate for each year first and then we will use **the AVERAGE function **to get the final output. The basic formula to find individual growth rate is,

**=(Ending Value / Beginning Value) â€“ 1**

Now, letâ€™s follow the steps below.

- First, select
**cell D6**to insert this formula.

`=(C6-C5)/C5`

- Then, press
**Enter**and you will see the**Annual Growth Rate**as a decimal number. But we need the output in a percentage.

- Therefore, go to the
**Home**tab and select**Percentage**from the drop-down menu in the**Number**group.

- Along with it, you can increase or decrease decimal places by clicking on the icons as shown below.

- Following, use the
**AutoFill**tool to get the**Annual Growth Rate**in the cell range**D6:D14**.

- Now, insert this formula in
**cell E5**.

`=AVERAGE(D6:D14)`

- Lastly, press
**Enter**and you will get the Average Annual Growth Rate**(AAGR)**.

**AVERAGE**function to return the average of the arguments in the cell range

**D6:D14**.

**Read More:** How to Calculate Population Mean in Excel

### 2. Compound Annual Population Growth Rate Estimation in Excel

Another efficient process is to calculate the compound annual growth rate in terms of population. We can do this by using a regular formula and **the XIRR function**. Let us see how they work.

#### 2.1. Use Regular Formula

In this section, we will use the following formula to estimate population growth.

**=(Ending Value / Beginning Value)^1 / n â€“ 1**

where **n **= **Period of time**

Now, follow the steps below.

- First, click on
**cell D5**and type this formula.

`=(C14/C5)^(1/(10-1))-1`

- Then, hit
**Enter**. - Following, you can see the output is showing as a decimal number.

- Therefore, change the format into
**Percentage**as discussed in the first method. - Finally, you will get the Compound Annual Growth Rate
**(CAGR).**

#### 2.2. Apply XIRR Function

In this last section, we will apply the **XIRR** function in Excel to calculate the population growth rate. The** XIRR** function follows this syntax,

**XIRR(value, date, [guess])**

Here, **value **= **Beginning Value**: **Ending Value**

**date **= **Beginning Date**: **Ending Date**

Now, letâ€™s go through the process below.

- In the beginning, we typed the time periods as dates in a span of
**10 years**in cell range**B5:B14**.

- Following, create a new table to insert
**Beginning**and**Ending Values**and calculate the**CAGR**.

- Next, insert the cell reference of the beginning value for the total population in
**cell F5**.

`=C5`

- Then, type this formula in
**cell G5**.

`=B5`

- Following, type this formula in
**cell F6**.

`=-C14`

- Lastly, insert the cell reference of
**B14**in**cell G6**with this formula.

`=B14`

- So far, we have inserted our required beginning and ending values in the new table.
- Now, type this formula in
**cell F7**.

`=XIRR(F5:F6,G5:G6)`

- Finally, hit
**Enter**. - Thatâ€™s it, you will get the
**CAGR**for the required time period.

**XIRR**function to return the value of the

**Compound Average Growth Rate**for the cell range

**F5:F6**based on the time period in the cell range

**G5:G6**.

**Read More: **Population Projection Formula in Excel

## Things to Remember

- Donâ€™t forget to insert a
**Minus**(**â€“**) sign before the cell reference of the Ending Value during the calculation with the**XIRR**function. - Make sure to keep a similar format for each time value. It is also applicable to the population values.

**Download Practice Workbook**

You can download the worksheet to practice by yourself.

## Conclusion

Finally, we are at the end of our article on how to calculate population growth rate in Excel with 2 effective methods. Let us know your insightful suggestions in the comment box.