5 Ways To Calculate Percent Growth In Excel

When working with data in Excel, calculating percent growth is a common task. Whether you're analyzing sales figures, website traffic, or stock prices, understanding how to calculate percent growth can help you make informed decisions. In this article, we'll explore five ways to calculate percent growth in Excel, along with examples and step-by-step instructions.

The Importance of Calculating Percent Growth

Calculating percent growth is essential in various fields, including business, finance, and economics. It helps you understand the rate of change in a particular value or quantity over time. By calculating percent growth, you can:

Identify trends and patterns in your data
Make informed decisions about investments or business strategies
Evaluate the performance of a product, service, or company
Compare the growth of different entities or industries

Method 1: Using the Percent Change Formula

The simplest way to calculate percent growth in Excel is by using the percent change formula. This formula calculates the percentage difference between two values.

To use this formula, follow these steps:

Select the cell where you want to display the percent growth.
Type the formula: =((new_value - old_value) / old_value) * 100
Replace new_value and old_value with the actual values you want to compare.
Press Enter to calculate the percent growth.

For example, suppose you want to calculate the percent growth in sales from 2020 to 2021. If the sales in 2020 were $100,000 and in 2021 were $120,000, the formula would be: =((120000 - 100000) / 100000) * 100 = 20%

Method 2: Using the Percent Change Function

Excel provides a built-in function called PERCENTCHANGE that calculates the percentage difference between two values.

To use this function, follow these steps:

Select the cell where you want to display the percent growth.
Type the formula: =PERCENTCHANGE(old_value, new_value)
Replace old_value and new_value with the actual values you want to compare.
Press Enter to calculate the percent growth.

Using the same example as above, the formula would be: =PERCENTCHANGE(100000, 120000) = 20%

Method 3: Using a Table

If you have a table with multiple rows and columns, you can calculate percent growth using a formula that references the entire table.

To use this method, follow these steps:

Select the cell where you want to display the percent growth.
Type the formula: =((new_value - old_value) / old_value) * 100
Replace new_value and old_value with the corresponding values in the table.
Press Enter to calculate the percent growth.

For example, suppose you have a table with sales data for 2020 and 2021, and you want to calculate the percent growth for each region. The formula would be: =((B2 - A2) / A2) * 100, where A2 is the sales value for 2020 and B2 is the sales value for 2021.

Method 4: Using a PivotTable

If you have a large dataset, you can use a PivotTable to calculate percent growth.

To use this method, follow these steps:

Create a PivotTable from your data.
Drag the value field you want to calculate the percent growth for to the "Values" area.
Right-click on the value field and select "Value Field Settings."
Click on the "Show Values As" tab.
Select "Percent of Previous" from the drop-down menu.
Click OK to apply the changes.

For example, suppose you have a PivotTable with sales data for 2020 and 2021, and you want to calculate the percent growth for each region. The PivotTable would display the percent growth for each region, along with the corresponding values for 2020 and 2021.

Method 5: Using Power BI

If you're using Power BI to analyze your data, you can calculate percent growth using the "Quick Measures" feature.

To use this method, follow these steps:

Open your Power BI report.
Click on the "Modeling" tab.
Click on the "Quick Measures" button.
Select "Percent of Previous" from the drop-down menu.
Drag the value field you want to calculate the percent growth for to the "Values" area.
Click OK to apply the changes.

For example, suppose you have a Power BI report with sales data for 2020 and 2021, and you want to calculate the percent growth for each region. The report would display the percent growth for each region, along with the corresponding values for 2020 and 2021.

Gallery of Excel Functions

Frequently Asked Questions

What is the difference between percent change and percent growth?

Percent change refers to the absolute difference between two values, while percent growth refers to the relative difference between two values.

How do I calculate percent growth in Excel?

There are several ways to calculate percent growth in Excel, including using the percent change formula, the percent change function, a table, a PivotTable, or Power BI.

What is the formula for calculating percent growth?

The formula for calculating percent growth is: `=((new_value - old_value) / old_value) * 100`

We hope this article has helped you understand the different ways to calculate percent growth in Excel. Whether you're a beginner or an advanced user, these methods will help you analyze your data and make informed decisions. Don't forget to share your thoughts and questions in the comments below!