How to Calculate Growth Rate. The first step is to write out the midpoint formula. The trailing growth rate could be derived from the last fiscal year the previous 12 months or some sort of multiple-year historical average.
Create a new table in cells A11 to B13 with the initial and ending values.
Example of How to Use the Average Annual Growth Rate AAGR Beginning value 100000. For example if I tell you that your stock portfolio has grown with an AAGR of 10 in the last 5 years it simply means that you have added 10 of the value every year at the end of the year as compared with the beginning of the year. The formula will act as the foundation for your calculation. Use a growth rate equation which takes into account the number of time intervals in your data.