# 2+ Ways to Calculate Monthly Growth Rate in Excel

If you are involved in a profession where you need to monitor the monthly progress of the company, you may need to know how to calculate the monthly growth rate. But many of you don’t know that you can easily calculate the monthly growth rate in Excel. To do that, this article will describe more than 2 ways to calculate the monthly growth rate in Excel.

Table of Contents

## Monthly Growth Rate Formula

The **Monthly Growth Rate** is the estimation of the growth of a company. The equation for calculating the monthly growth rate:

Usually, the monthly growth rate is expressed in percentages.

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### Introduction to the Dataset

Here is a dataset to show you how to calculate the monthly growth rate. The dataset has 3 columns: **Month (column A), Revenue (column B), **and **Monthly Growth Rate (column C)**.

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## Quickest Way to Calculate Monthly Growth Rate in Excel

The quickest way to calculate the monthly growth rate is to follow the fundamental equation of monthly growth rate.

**Usage Guide**

**Step_1: **Leave the top cell (**cell** **C2**) of the **Monthly Growth Rate **column **(**column **C)**.

**Step_2: **Write the formula in the second top cell (**cell** **C3**)**.**

**Formula**

**=(B3-B2)/B2**

I have left the top cell blank because the formula requires a difference of values between the ending value and starting value. But there is no value before the revenue of January.

**Step_3: **Press **ENTER **to apply the formula.

**Step_4: **Select **cell C3**.

**Step_5: **Now click on the **Home **tab.

**Step_6: **From the **Number **group, select the **percentage (%)** icon. ** **

**Step_7: **Double-click the **Fill Handle** at **cell C3** to copy the formula down.

**Final Result **

The monthly growth rate is represented in percentages now. But you can keep the results if you prefer.

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### Alternative Way to Calculate Monthly Growth Rate

The other method to calculate the monthly growth rate is using another structure of the fundamental growth equation.

**Usage Guide**

**Step_1: **Type the formula in the second top cell (**cell** **C3**)**. **

**Formula**

**=(B3/B2)-1**

**Step_2: **Press **ENTER**.

**Step_3: **Select the value in **cell C3**.

**Step_4: **Now click on the **Home **tab.

**Step_5: **Select the **percentage (%)** icon from the **Number **group. ** **

**Step_6: **Double-click on the **Fill Handle** at **cell C3.**

**Final Result**

This formula works fine like the first method. You can memorize any of the two methods to calculate the monthly growth rate.

But you may find negative monthly growth rates like my dataset. These negative values are important to mark sometimes. You can identify the negative values easily with a few more steps.

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#### Highlight the Negative Values

**Step_7: **Select the values of **column C**.

**Step_8: **Select the **Home **tab.

**Step_9: **From the **Styles **group, click on the **Conditional Formatting** drop-down menu.** **

**Step_10: **Select the **Less Than** command.

The **Less Than** window will come along on the screen.

**Step_11: **Insert **‘0’** in the **Format cells that are LESS THAN** box.

**Step_12: **Pick a color from the second box. ** **

**Step_13: **Hit the **OK **button.

You will see the negative results are marked with red color boxes.

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## Calculate Compound Monthly Growth Rate in Excel

The compound monthly growth rate finds the growth rate of a business in a given period of time.

The formula for compound monthly growth rate:

**={(Last Value/First Value)^(1/1-Time)}-1**

**Usage Guide**

**Step_1: **Select an empty cell (**cell C7**).

**Step_2: **Type the formula of the compound growth rate**.**

**Formula**

**=((B13/B2)^1/11)-1**

**Formula Explanation**

**B13**is the ending value.**B2**is the beginning value.**11**is the difference in time**(12-1=11)**.

**Step_3: **Hit the **ENTER **key.

**Step_4: **Convert the decimal value into the **percentage (%)**. ** **

**Final Result **

The result is -5%. It’s normal to return negative values because the growth can not be always positive.

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## Conclusion

I hope the 3 approaches of monthly growth rate-related formulas will help you to solve any problem regarding this topic. Feel free to drop a comment in the comment section if you find anything confusing.