## What Is GROWTH Formula In Excel?

The

GROWTH formula in Excelhelps users to calculate the expected sales growth using the existing or current sales data. The function helps predict revenue targets and sales, and is useful to check if a target predicted is attainable.

The **GROWTH Excel formula **is a** Statistical **inbuilt function, so we can insert the formula from the “**Function Library**” or enter it directly in the worksheet. For example, the table below shows a company’s 2015-2019 sales data.

We will evaluate the predicted exponential growth and check whether the sales target of $3.5 million is feasible in 2020 using the **GROWTH Excel formula**.

Select cell **B7**, enter the formula **=GROWTH(B2:B6,A2:A6,A7), **and press “**Enter**”.

The output is **$3,508,766.40, **as shown above. Therefore, the predicted exponential growth value suggests that the sales target for 2020 can be $3.5 million.

##### Table of contents

###### Key Takeaways

- The
**GROWTH Excel formula**predicts the sales profit for the subsequent years, using the existing sales dataset. - Users can apply the
**GROWTH()**to accommodate an exponential curve to the known x- and y-values. Also, the function helps confirm if a target, predicted in activities such as forecasting a business’s revenue, is practically possible or attainable. - If the function returns a decimal value, we can use the
**ROUND()**function to round off the result. - When supplying an array constant as an argument value, say,
, ensure we use commas to separate the values in the same row and semicolons to separate rows.*known_xs*

### GROWTH() Excel Formula

The syntax of the **GROWTH Excel formula **is:

Where, for the given equation, with variable y depending on variable x, the base m raised to the exponent x, and a constant b:

**y = b * m^x**

The arguments of the **GROWTH Excel formula **are:

: The given set of y-values. It is a mandatory argument.*known_ys*: The given set of x-values containing the same number of data points as the*known_xs*. It is an optional argument.*known_ys*: The new x-values for which we require the*new_xs***GROWTH Excel function**to calculate the respective y-values. It is an optional argument.: A logical value indicating whether to compel the constant*const***b**to be 1 in the above exponential equation. It is an optional argument.

**[Special Note: **A few reasons why the** GROWTH Excel function **may not work are,

- For a
array, each column or row of*known_ys*gets interpreted as an individual variable.*known_xs* - If we ignore the argument
, the function considers it as the array {1,2,3,….}, but with the same size as the argument*known_xs*.*known_ys* - The argument
should have a row (or column) for each independent variable, as the argument*new_xs*. Also, for a*known_xs*array in a single column (or row),*known_ys*and*known_xs*should have the same number of columns (or rows).*new_xs* - If we ignore the
, the function considers it the same as*new_xs*. And when we ignore the*known_xs*array, it assumes as an array {1,2,3,….} of the same length as*new_xs*.*known_ys* - If the argument
**const**is**TRUE**or we ignore it,**b**gets evaluated normally. But if**const**is**FALSE**, the**b**value becomes**1,**and the**m**-values get adjusted to make the exponential equation as**y = m ^ x**.]

### How To Use GROWTH Excel Formula?

We can use the **GROWTH Excel formula **using 2 methods, namely,

**Access from the Excel ribbon.****Enter in the worksheet manually.**

#### Method #1 – Access from the Excel ribbon

First, choose a cell for output → select the “**Formulas**” tab → go to the “**Function Library**” group → click the “**More Functions**” option drop-down → click the “**Statistical**” option right arrow → select the “**GROWTH**” function, as shown below.

The “**Function Arguments**” window appears. Enter the argument values in the “**Known_ys, Known_xs, New_xs, **and** Const**” fields → click “**OK**”, as shown below.

#### Method #2 – Enter in the worksheet manually

First, check if the source data does not contain any non-numeric argument values and zeros in the ** known_ys **array. And ensure when the source data includes the

**array, the array length should be the same as that of the**

*known_xs***array.**

*known_ys*- Select an empty cell for the output.
- Type
**=GROWTH(**in the cell. [Alternatively, type**=G**and double-click the**GROWTH**function from the Excel suggestions.] - Enter the arguments as cell values or cell references and close the brackets.
- Finally, press
**Enter**to view the predicted exponential growth value.

**[Note: **If we must determine more than one new y-value, select the required target cell range and apply the **GROWTH()** as an array formula using the keys **Ctrl** + **Shift** + **Enter**.]

#### Basic Example

We will calculate the predicted units for the 7^{th} month and the growth in the first six months sales **using** **GROWTH Excel function.**

The first table in the image below shows a warehouse’s six-months inventory data.

The steps to calculate the predicted data **using** **GROWTH Excel formula** are,

**Select cell B11, enter the formula =GROWTH(B2:B7,A2:A7,A11), and press Enter.**

Here, the formula accepts cell ranges**B2:B7**and**A2:A7**as the known y and x values, and cell**A11**as the argument, and returns the estimated exponential growth in the 7*new_xs*^{th}month,**3215.803667**.

[Alternatively, we can select cell**B11**→ click**Formulas**→**More Functions**→**Statistical**→**GROWTH**to open the**Function Arguments**window.

Next, enter the required**GROWTH()**arguments in the**Function Arguments**window.

And once we click**OK**in the**Function Arguments**window, the output is executed in cell**B11**.]**Then, select cell B13, enter the formula =GROWTH(B2:B7,A2:A7), and press Enter.**

Therefore, the formula accepts the cell ranges**B2:B7**and**A2:A7**as the known y and x values and returns the growth in the given six months as**1728.845598**.

### Examples

We will understand some advanced scenarios using the **GROWTH Excel formula examples**.

#### Example #1

We can apply the **GROWTH Excel function** as an array formula to find the prediction results (new y-values) for more than one day (new x-values).

The following table shows the count of the orders dispatched in six days.

The procedure to predict the possible number of orders we can dispatch in the next four days (7, 8, 9, and 10) are,

**Step 1**: Select cell range **B8:B11**, enter the formula ** =GROWTH(B2:B7,A2:A7,A8:A11), **and press the

**Ctrl**+

**Shift**+

**Enter**keys to execute it as an array formula.

**Step 2**: And once we press the keys **Ctrl** + **Shift** + **Enter**, the array formula gets executed.

We get the output as shown above, the function returns the achievable number of orders we can dispatch in the required four days.

#### Example #2

We will predict the possible distance the car can cover in **11** hours using the **ROUND excel function **and the **GROWTH formula**.

The below table shows the distances a car covers in the respective hours.

The procedure to apply the **GROWTH Excel function** and the **ROUND() function** to predict the **11** hours distance are,

**Step 1**: Select cell **B8**, enter the formula ** =ROUND(GROWTH(B2:B7,A2:A7,A8),0)**, and press

**Enter**.

We get the output as shown above.

[**Output Observation:** The formula accepts the cell ranges **B2:B7** and **A2:A7 **as the ** known_ys **and

**arguments, and the cell**

*known_xs***A8**value as the

**argument. And it returns the value**

*new_xs***764.808633137768**miles as the predicted distance the car can travel in

**11**hours.

The **ROUND() then takes** the value **764.808633137768 **and **0 **as the inputs to round off the number to zero decimal places, thus returning the value **765** miles as the final output.]

#### Example #3

Let us see how the **GROWTH Excel function **works along the lines of the below equation.

**y = b * m^x**

The given data includes the **b **value as **10** and the **m** value as **2**, as depicted in the below image.

The steps to determine the new y-values for the new x-values using the given formula and **GROWTH Excel function **in the cell ranges **B16:B20** and **E16:E20**, are as follows:

**Step 1**: Select cell **B16**, enter the equation formula ** =$B$3*$B$4^A16**, and press

**Enter**.

**Step 2:** Drag the formula from cell **B16** to **B20** using the fill handle.

**Step 3: **Select cell range **E16:E20**, and enter the formula *=GROWTH(B8:B12,A8:A12,D16:D20,*

**Step 4: **In continuation with the formula, Excel provides a drop-down list to pick the **const** argument. Double-click the required option, here, we choose **TRUE**, as we need to use the value **b **normally.

**Step 5: **Close the parenthesis and press **Ctrl** + **Shift** + **Enter**. It will get executed as an array formula.

We get the output as shown above. The given exponential formula and the **GROWTH()** results are the same.

### Important Things to Note

- Suppose the arrays,
, and*known_xs*, have different lengths. Then the*known_ys***GROWTH Excel function**output will be the**#REF!**error. - If the supplied
array includes values <=0, we will get the*known_ys***#NUM!**error. - For non-numeric
,*known_xs*, or*known_ys*argument values, the output will be the*new_xs***#VALUE!**error.

### Frequently Asked Questions (FAQs)

**1. How to use GROWTH() to create an exponential graph in Excel?**

We can use **GROWTH()** to create an exponential graph in Excel by first determining the y-values for the series of new x-values, and then create a **Scatter** plot graph.

For example, the table below contains arrays of known x- and y-values in cells **A2:B6**.

The steps to plot an exponential graph for the entire dataset are as follows:**• 1: **Select cells **B7:B11**, and enter the formula** =GROWTH(B2:B6,A2:A6,A7:A11).**

**• 2:**Press

**Ctrl**+

**Shift**+

**Enter**keys to execute the formula as an array formula.

**• 3:**Choose cell range

**A1:B11**→ select the “

**Insert”**tab → go to the “

**Charts**” group → click the “

**Insert Scatter(X, Y) or Bubble chart”**option drop-down → select the “

**Scatter”**chart, as shown.

**• 4:**Right-click on a data point in the plot area and select the

**Add Trendline**option from the format menu to open the

**Format Trendline**pane.

The Trendline appears in the chart, and the “

**Format Trendline**” window pane opens on the right side.

**• 5:**Select the option

**Exponential**from the

**Trendline Options**and close the pane.

**• 6:**Finally, using the

**Chart Elements**option (‘

**+**’ icon), enable the

**Axis Titles**option and update the chart title and axes titles in the chart area to achieve the required exponential graph.

Here, the final scatter graph output is shown below.

**2. What is the method to use GROWTH Excel formula?**

We can use the **GROWTH Excel f**ormula as follows:

First, check if the source data does not contain any non-numeric argument values and zeros in the ** known_ys **array. And ensure when the source data includes the

**array, the array length should be the same as that ofthe**

*known_xs***array.**

*known_ys*1) Select an empty cell for the output.

2) Type

**=GROWTH(**in the cell. [Alternatively, type

**=G**and double-click the

**GROWTH**function from the Excel suggestions.]

3) Enter the arguments as cell values or cell references and close the brackets.

4) Finally, press

**Enter**to view the predicted exponential growth value.

**3. Why is the GROWTH function in Excel not working?**

The **GROWTH** function in Excel is not working, perhaps because of the following reasons:**• **The requirement is to determine y-values for an array of x-values. But we do not execute the **GROWTH()** as an array formula.**• **If the supplied ** known_xs** and

**arrays have different lengths.**

*known_ys***•**The entered

**array contains values less than or equal to 0.**

*known_ys***•**If supplied

**,**

*known_xs***, or**

*known_ys***argument values are non-numeric.**

*new_xs*### Download Template

This article must help understand the **GROWTH Excel function**, with its formula and examples. We can download the template here to use it instantly.

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