Quick Hacks: How To Calculate Growth Rate for Your Product
How to calculate a percentage that accurately represents your products growth rate
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Say that you've got a set of numbers that represent growth for your project. Whether it's installations, signups or revenue it doesn't matter too much - you just need to provide a percentage. Although it seems like a difficult thing to work out, there are some really easy ways to do this.
I'm going to assume that you've already plugged these numbers into a spreadsheet application. I'll show how you can do this with Excel.
First, make sure to plot your data in a scatter plot. Then click on the series that you want to calculate growth on and choose to Add Trendline
Choose an Exponential trendline
And choose to display the equation on the chart through the Options
You'll now see the formula (highlighted in the screenshot below)
The power section of this is where you can derive the growth % from - you just need to multiple it by 100 to get the %. In the case above .0069 results in a growth rate of .6%.
You can see other ways to calculate growth from the comfort of Excel in the igetit newsletter.
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