The five most useful Excel formulas for measuring increase are: basic percentage increase, month-over-month growth, year-over-year growth, compound annual growth rate (CAGR), and a conditional increase check using IF. Each is explained below with a ready-to-use formula.
1. Basic Percentage Increase
=(New Value - Old Value) / Old ValueExample: =(B2-A2)/A2, the standard formula for a single increase calculation.
2. Month-Over-Month (MoM) Growth
For data laid out in columns by month:
=(C2-B2)/B2Where B2 is the previous month and C2 is the current month. Drag this across your row to see MoM growth for every month at once.
3. Year-Over-Year (YoY) Growth
Same logic as MoM, but comparing the same period across years:
=(B2-A2)/A2Where A2 = this year’s figure and B2 = last year’s figure for the same month or quarter, useful for spotting seasonal trends without seasonal noise.
4. Compound Annual Growth Rate (CAGR)
For growth over multiple years, a simple percentage increase formula overstates the “average”, CAGR is more accurate:
=(End Value/Start Value)^(1/Number of Years)-1Example: =(B2/A2)^(1/5)-1 for 5 years of growth between a start and end value.
5. Conditional Increase Check (Flag Growth vs. Decline)
Useful for large datasets where you want Excel to automatically label each row:
=IF(B2>A2,"Increase","Decrease")Or combine it with the percentage formula to show the label and the number:
=IF(B2>A2, (B2-A2)/A2, (B2-A2)/A2)(This returns the same percentage regardless of direction, the IF is mainly useful when you want a text label like “Increase”/”Decrease” alongside the number.)
Quick Reference Table
| Formula | Use Case |
|---|---|
=(B2-A2)/A2 |
Single percentage increase |
=(C2-B2)/B2 dragged across |
Month-over-month growth |
=(B2-A2)/A2 (yearly columns) |
Year-over-year growth |
=(B2/A2)^(1/N)-1 |
Multi-year average growth (CAGR) |
=IF(B2>A2,"Increase","Decrease") |
Flagging increase vs. decrease |
Related reading: How to Calculate Percentage Increase in Excel and How to Calculate Above Average Percentage.
FAQ
What Excel formula shows growth over several years accurately?
CAGR: =(End Value/Start Value)^(1/Number of Years)-1. It smooths out year-to-year volatility better than a simple average of yearly percentage increases.
How do I calculate month-over-month growth automatically in Excel?
Use =(C2-B2)/B2 in the first comparison cell, then drag it across your row of monthly data, Excel updates the references automatically.
Is there a single formula that works for both increase and decrease?
Yes, =(New-Old)/Old works for both; a decrease simply returns a negative percentage.
