Finance

How to Calculate Annual Percentage Growth Rate?

Annual Growth Rate is about the amount of growth that any firm is witnessing. If you want to know how you can calculate annual percentage growth rate, then this article will help you to do that using a simple formula.

The formula which we will be using to calculate the percentage growth rate is mentioned below.

Annual Growth Rate Formula

We are going to use two things in this formula and they are the Start value and the Final Value.

Start Value: Enter the value when the firm or anything was started, for example, let us say 150.

Final Value: Enter the current value or the end value, for example, 275.

When we substitute this value to the formula we get 83.33% that is the annual growth rate in percentage.

Steps to Calculate Annual Percentage Growth Rate:
  • Find out your start value.
  • Find out the end value.
  • Use the formula mentioned above to calculate the annual growth percentage.
  • Subtract the start value from final value.
  • Divide what you get by the start value.
  • And finally, multiply that with 100 to get the annual growth rate percentage.

This is how you can calculate annual growth rate in percentage using a simple formula. I hope this helped you out in some or the other way. If you have any questions in your mind then you can comment down below.