Analyzing historical data is crucial for making informed decisions in business. Luckily, Google Sheets offers a wide range of built-in functions to simplify this process. One such function that can be incredibly helpful for trend analysis is the GROWTH function.
The GROWTH function in Google Sheets allows you to analyze historical data obtained from your business, empowering you to make well-informed decisions. This function is especially useful when your data values rise or fall at increasingly higher rates. If your data values are increasing or decreasing at a steady rate, consider using the TREND or FORECAST function, which employ the least squares method to estimate future values.
Different from the linear trend line (TREND) that fits a straight line, the exponential trend line (GROWTH) is curved. This makes it perfect for capturing non-linear relationships between variables.
To utilize the GROWTH function effectively, follow the steps outlined below. First, let’s go over the syntax of the function, after which we’ll dive into an example formula.
GROWTH Function in Google Sheets – Syntax and Formula Examples
The syntax for the GROWTH function is as follows:
GROWTH(known_data_y, [known_data_x], [new_data_x], [b])
Here’s a visual representation of the function’s syntax:
Let’s consider an example to help you better understand the syntax of the GROWTH function. Suppose we want to predict the sales values for the months of October, November, and December (B11, B12, and B13) using the GROWTH function. Before diving into the formula, let’s quickly go over the arguments used in this function:
known_data_y: The range containing the known dependent (y) values (in this case, the sales values in the range B2:B10).known_data_x: The values of the independent variable(s) (in this case, the months in the range A2:A10) corresponding toknown_data_y.new_data_x: The data points (in this case, the months in the range A11:A13) for which you want to obtain the correspondingyvalues.
For more detailed information about the syntax arguments used in the GROWTH function, you can refer to the documentation on Crawlan.com.
GROWTH Formula That Predicts Future Sales
Based on the sample data shown above, the following GROWTH formula predicts the sales values for the months of October, November, and December:
=growth(B2:B10,A2:A10,A11:A13)
To provide a clearer understanding, take a look at the following screenshot. It showcases the GROWTH, TREND, and FORECAST formulas side by side:
And that’s all you need to know about the GROWTH function in Google Sheets!
Related: Dynamic Data Ranges in Growth, Trend, and Forecast in Google Sheets.
