# Excel 2007 : compound & monthly growth rate%

1. ## compound & monthly growth rate%

below are the monthly data for Jul - Mar, data & are in real values and are not in percenatge difference. Problem is this i want to figure out the growth rate, either it could be postive growth or negative. i attempted to figure out the average growth rate in percenatge from jul - mar. I have taken the monthly percentage difference of the data and then subtracted it from 1, then i applied GEOmean formula. but can not be satsified by the answer. the answer i come through is -8%. Is this the right answer?. the formula i used to come to this answer is =GEOMEAN(K2:R2+1)-1. i took the percenatge difference then subtract1 from the answer then applied thet formula. Please anybody help me to solve this as i have importnt presentationn to make in which i have to show the growth rate % .

149.11
212.35
195.6
166.47
160.8
146.63
179.18
141.4
155.62

2. ## Re: compound & monthly growth rate%

tkaz,

I was able to calculate the Geomean as 0.54% and doubled checked it over your growth period to ensure that 149.11 would grow to 155.62.

Without your spreadsheet or cell references for your data I will do my best to make myself understood:

Growth = (n1 - n0)/n0
Change = 1 + Growth

So assuming your figure 149.11 appears in K1

Growth = (K2 - K1)/K1
Change = 1 + ((K2 - K1)/K1)

Then just take the geomean of your range of Changes and you are good to go.

You cannot take a geomean of Growth using negative figures due to the nature of the calculation of a geometric mean. Using the relationship between the old and the new figures rather than the difference will make your life much easier.

Hope this helps,

Regards,

Steven

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