How to Calculate Annual Percentage Growth in Excel 2007

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Percent growth tells you how much one item changes in direct relation to another item. This is often seen in business when you compare one year's results to the results of a second year. For example, Company A has \$500 of sales in 2009 and \$800 in sales in 2009. Company B has \$1,300 in sales in 2008 and \$1,500 in 2009. Company A's annual percentage growth of sales is 60 percent and Company B's annual percentage growth of sales is 15 percent. This shows company A's sales are growing faster than company B. You can simplify these calculations by entering them into Excel 2007.

• Open Microsoft Excel 2007. You can either click on its icon if it is on your desktop, or you can go to "Programs" then "Microsoft Office" from you start menu.

• Type "Beginning Value" in cell A1. Type "Ending Value" in cell B1. Type "Percent Change" in cell C1. This sets up your worksheet. These are the titles for each column so you know where to enter the proper information.

• Type your actual beginning value in cell A2. For example, type "30" in cell A2. This is the value of the item or business for which you are trying to find the annual percentage growth at the start of a fixed period.

• Type your ending value in cell B2. For example, type "10" in cell B2. This is the value of the item or business for which you are trying to find the annual percentage growth at the end of the fixed period.

• Type "=((A2-B2)/B2)*100)" to calculate percent change in cell C2. The calculation should be 200. So the percent change is 200 percent. The "A2-B2" portion of the formula calculates the change in the values. Dividing it by the beginning balance "B2" shows the percentage change. You then multiply by 100 in order to convert the percent change value from decimal form to a percentage.

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