Annual Growth Rate in Excel

Calculating the Annual Growth Rate in Excel is very easy. Annual growth rates are used across all industries to determine business trends both short-term and long-term. Let’s review the formula below.

Let’s use the following data set as an example. To calculate the Annual Growth Rate between 2011 and 2010, you take the sales in 2011 subtract them from 2010 sales then divide by 2010 sales. Simple right.

=(Current Year-Previous Year)/Previous Year
Annual Growth Rate in Excel

You can use the fill handle to pull down the formula to calculate the annual growth rate over multiple years as shown below. Make sure you change column C to %.

Calculate Annual Growth Rate in Excel

Annual Growth Rate – Additional Resources

Now that you understand annual growth, check out Compound Annual Growth.