# GROWTH

The GROWTH function is used to predict exponential growth based on existing data points. It calculates the predicted exponential growth rate of a given set of known y-values (dependent variable) against a set of known x-values (independent variable). This function is commonly used in statistical analysis, forecasting, and trend analysis.

## Syntax

=GROWTH(`known_y's`

, `known_x's`

, `new_x`

, `const`

)

`known_y's` | The set of y-values representing the dependent variable. | |

`known_x's` | The set of x-values representing the independent variable. | |

`new_x` | The new x-value for which you want to predict the corresponding y-value. | |

`const` | A logical value that specifies whether to force the constant "b" in the equation y = mx + b to be equal to 0. By default | const is FALSE. |

`Skip` | Note that the "Skip" argument is not supported in current versions of Excel. |

## About GROWTH

When you need to extrapolate future trends or understand the exponential growth pattern of a dataset, the GROWTH function steps in as a valuable tool in Excel. It generates a growth trendline based on given data points, providing insights into the potential direction of a set of values over time, such as sales figures or population growth rates. By fitting a line to your data and projecting it forward, GROWTH supports informed decision-making and planning in various fields, including business, finance, and research. GROWTH operates by calculating the exponential trendline that best fits the specified known y-values corresponding to the known x-values. It then applies this trendline to predict the y-value associated with a new x-value, aiding in forecasting and trend analysis.

## Examples

Suppose you have data points representing the growth of a particular product over time. The known x-values (months) are 1, 2, 3, 4, and 5, and the known y-values (sales in thousands) are 10, 15, 25, 35, and 55. To predict the sales for month 6, you can use the GROWTH function as follows: =GROWTH({10, 15, 25, 35, 55}, {1, 2, 3, 4, 5}, 6)

Consider a scenario where you have historical data on the revenue growth of a startup. The known x-values (years) are 1, 2, 3, 4, and 5, with corresponding known y-values (revenue in millions) of 2, 4, 8, 16, and 32. To estimate the revenue for year 6 while forcing the constant to be 0, you can use the GROWTH function with the const argument set to TRUE: =GROWTH({2, 4, 8, 16, 32}, {1, 2, 3, 4, 5}, 6, TRUE)

## Questions

**What does the const argument in the GROWTH function do?**

The const argument in the GROWTH function specifies whether to force the constant term in the growth equation y = mx + b to be 0. By default, const is set to FALSE, but you can set it to TRUE to constrain the model with a zero constant.

**How does the GROWTH function assist in forecasting future values?**

The GROWTH function calculates an exponential trendline based on existing data points, allowing you to predict future values by extending the trend into new x-values. It assists in forecasting by providing insights into potential growth patterns and trends.

**Can the GROWTH function handle irregularly spaced data points?**

The GROWTH function requires a set of evenly spaced known x-values and corresponding y-values to predict growth accurately. Irregularly spaced data points may lead to less reliable growth predictions.

## Related functions

FORECAST

LINEST

TREND

LOGEST

GROWTH