How to Calculate an Annual Percentage Growth Rate

Step-by-Step Guide

1. 1

   Step 1: Get the starting value.

   To calculate the growth rate, you're going to need the starting value.
   
   The starting value is the population, revenue, or whatever metric you're considering at the beginning of the year.
   
   For example, if a village started the year with a population of 125, then the starting value is
   125.
2. 2

   Step 2: Get the final value.

   To calculate the growth, you'll not only need the starting value, you'll also need the final value.
   
   That value is the population, revenue, or whatever metric you're considering at the end of the year.
   
   For example, if a village ended the year with a population of 275, then the final value is
   275. , The growth is calculated with the following formula:
   Growth Percentage Over One Year = FinalValue−StartValueStartValue∗100{\displaystyle {\frac {FinalValue-StartValue}{StartValue}}*100}Example Problem.
   
   A village grows from 150 people at the start of the year to 275 people at the end of the year.
   
   Calculate its growth percentage this year as follows:
   Growth Percentage =275−150150∗100{\displaystyle ={\frac {275-150}{150}}*100} =125150∗100{\displaystyle ={\frac {125}{150}}*100} ≈
   0.8333∗100{\displaystyle
   0.8333*100} =
   83.33%{\displaystyle
   83.33\%}
3. 3

   Step 3: Calculate the growth rate over one year.

Detailed Guide

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