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,.

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:

• 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:

• 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:

• 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:

• 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:

• 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:

• 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:

• 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).

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