In this tutorial, you will learn how to use the GROWTH function in Google Sheets.
How to Use the GROWTH Function in Google Sheets
The GROWTH function in Google Sheets is a great way to start forecasting and analyzing trends in your data. This function can be used to predict future values in a dataset, by extrapolating from existing partial data.
For example, you can use the GROWTH function to forecast future sales based on historical sales data. You can also use it to forecast the growth of a certain population, or the performance of an investment.
Do note, however, that the GROWTH function calculates future values along a exponential trend. The user should ensure that the data they’re predicting must also follow an exponential trend before using the GROWTH function.
In this guide, we will give you a step-by-step explanation of how to use the GROWTH function in Google Sheets.
How to Calculate Exponential Growth in Google Sheets
Here’s how to calculate exponential growth in Google Sheets using the GROWTH function.
Select a blank cell to place the GROWTH function.
In this example, we want to predict the growth in sales for the months of September to December. We’ll start by adding our formula in cell B10.
Next, type the formula “=GROWTH(“ to start the GROWTH function.
The first argument of the GROWTH function should be the dependent data that is already known. This data will be used to fit an ideal exponential growth curve.
In this example, we already know the sales for January through August. These values are found in the range B2:B9.
The second argument should be the known independent variables in our dataset. The second argument must be an array of the same length as the first argument.
In our example, the month values in our table act as our independent variables.
Next, we’ll provide the new independent variables that we want to use for our curve fit.
In our example, we’ll use the months without any sales value as our third argument.
After evaluating the formula, the GROWTH function should output its prediction on the future values.
These values are computed by following an exponential growth trend based on the partial data provided.
We can generate a line graph to further illustrate how the GROWTH function predicts future values.
In the example above, predicted values are indicated by a red diamon marker.
This guide should be everything you need to use the GROWTH function in Google Sheets.
You may make a copy of this example spreadsheet to test it out on your own.