Mastering Excel- A Step-by-Step Guide to Calculating Growth Percentage

How do you calculate growth percentage in Excel? Whether you’re analyzing financial data, tracking sales figures, or monitoring the growth of a business, understanding how to calculate growth percentage in Excel is a crucial skill. This article will guide you through the process, providing you with step-by-step instructions to calculate growth percentage with ease.

In Excel, there are several methods to calculate growth percentage. The most common approach involves using the subtraction and division methods. Here’s a brief overview of both methods before diving into the detailed instructions.

Method 1: Subtraction and Division Method

This method involves subtracting the initial value from the final value, dividing the result by the initial value, and then multiplying by 100 to get the growth percentage.

Method 2: Percentage Change Formula

The percentage change formula is another method to calculate growth percentage in Excel. It involves using the percentage change function, which is available in Excel’s built-in functions.

Now, let’s explore the detailed instructions for both methods.

Calculating Growth Percentage Using the Subtraction and Division Method

1. Open your Excel spreadsheet and select the cell where you want to display the growth percentage.
2. Enter the following formula: =((Final Value – Initial Value) / Initial Value) 100
3. Replace “Final Value” with the actual value you want to calculate the growth percentage for.
4. Replace “Initial Value” with the starting value from which you want to calculate the growth percentage.
5. Press Enter, and the growth percentage will be displayed in the selected cell.

Calculating Growth Percentage Using the Percentage Change Formula

1. Open your Excel spreadsheet and select the cell where you want to display the growth percentage.
2. Enter the following formula: =PERCENTCHG(Initial Value, Final Value)
3. Replace “Initial Value” with the starting value from which you want to calculate the growth percentage.
4. Replace “Final Value” with the actual value you want to calculate the growth percentage for.
5. Press Enter, and the growth percentage will be displayed in the selected cell.

By following these simple steps, you can calculate growth percentage in Excel using either the subtraction and division method or the percentage change formula. These techniques are essential for analyzing data and tracking the growth of your business or investment. Happy calculating!