How to Calculate Average Percentage Change in Excel

You may want to calculate the average percentage change in Excel to determine the growth or decline of your company annually or to predict the profits for the following year. The rate of change in percentage for each time slot over a span of time is given to us by the average percentage change. We’ll walk you through 1 simple approach in this article to figure out the calculation of the average percentage change in Excel.

Let’s say your dataset contains information about your company’s profits from the preceding 12 years. You now wish to figure out the yearly average percentage change in your company’s profit. You will see exactly how to achieve it in the portion that follows.

Overview image to calculate the average percentage change in Excel


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What is Average Percentage Change?

To begin, let’s define what an average percentage change is before calculating one. The average percentage change is the cumulative average of each term’s increase or decrease.

The time frame can be expressed in any time slot, such as a day, month, year, etc. The average percentage change is also referred to as the average yearly growth or reduction rate when the period is within a year. The compound annual growth or reduction rate is a different kind of yearly growth or reduction rate.

The cumulative impact is taken into account when calculating the compound annual growth or reduction rate, and each year’s growth or reduction is multiplied in the year after. It may be a useful method for determining your investment returns. When a year’s growth or decline is unrelated to that of the prior year, the average annual growth or decline rate is employed. A company’s profit growth or decrease can be estimated using its average yearly growth or reduction rate or simple average percentage change.

The general formula that you can use to calculate the percentage change is:

Percentage Change in a time frame = (Profit at the end of the time – Profit at the initial time)/  Profit at the end of the time

And if you want the formula average percentage change then this one is for you.

Average Percentage Change = Summation of percentage change in all the times/ Number of times


Learn to Calculate Average Percentage Change in Excel with AVERAGE Function

While writing this article, “How to Calculate Average Percentage Change in Excel”, we’ve considered a dataset that contains approximately 6 columns and 17 rows. In this dataset, we added Years, Profit, Percentage Change, and Average Percentage Change to make you better understand. But if you want, you can change the entities and put your own values.

Sample dataset containing the record of yearly profit

Computing the percentage change is the prerequisite to calculating the average percentage change in Excel. We ought to know the figure from the prior year in order to calculate the percentage change. However, for the first year, we cannot access the data from the year before. Therefore, we must determine the percentage change from our dataset’s next year. We will do this by applying the AVERAGE function of Excel.

⬇️⬇️ STEPS ⬇️⬇️

  • Primarily, you need to select cell D7.
  • Secondly, write the following formula on that cell.

=(C7-C6)/C6

  • Thirdly, press Enter key.

Using the Excel formula to calculate the percentage change

  • Fourthly, use the fill handle to drag the formula to the entire column.
  • Consequently, you will get the Percentage Change for each cell.

Using the fill handle to drag the formula to calculate the percentage change

  • Then we added the decimal values after the values below the Percentage Change heading.

Adding decimal value to the percentage change

  • Belatedly, you have to select cell F6.
  • Then you will write the given formula on that cell.

=AVERAGE(D6:D17)

  • Finally, tap the Enter key.
  • Eventually, you will get the required result you wanted.

Using the AVERAGE function to calculate the average percentage change in Excel

Undoubtedly, you can simply follow this method to calculate the average percentage change in Excel.

📕 Read More: 6 Ways to Solve When Average Formula is Not Working in Excel


Average Formula Using VBA in Excel

Using VBA in Excel is unquestionably a good technique to achieve any calculation in Excel. If you want to determine the average formula in Excel using VBA then this part is for you. We will show you how to calculate the average formula using VBA in Excel step by step. Just follow the given instructions to obtain the formula.

⬇️⬇️ STEPS ⬇️⬇️

  • Primarily, go to the Excel worksheet.
  • Secondly, press Alt+F11.
  • Then you will get a VBA window in front of you.
  • Thirdly, you need to insert a Module.

Inserting a module into the VBA window

  • After that, you will get a module there.
  • Fourthly, write the following code on that module.

Code

Sub Average_Formula_VBA()
Dim p As Worksheet
Set p = Worksheets("Average Formula")
p.Range("E6") = Application.WorksheetFunction.Average(p.Range("C6:C17"))
End Sub

VBA code to determine the average formula in Excel

  • Afterward, select Run and press Run Sub/UserForm or simply F5 key.
  • Consequently, you will get the required result you wanted.

The result after using VBA to determine the average formula in Excel

Truly, this is a convenient approach to calculating the average formula in Excel using VBA.

📕 Read More: 4 Ways to Calculate Average, Minimum, and Maximum in Excel


Percentage Increase or Decrease Formula in Excel

In Excel, you can determine the percentage increase or decrease formula easily. According to the Excel rule, if the percentage increases then the value will be Positive,and if the percentage decreases then the value will be Negative. We will show this to you in this section with some appropriate steps.

⬇️⬇️ STEPS ⬇️⬇️

  • Primarily, you need to select cell D7.
  • Secondly, write the following formula on that cell.

=(C7-C6)/C6

  • Then press Enter key.

 

Using the Excel formula to calculate the percentage change

  • Fourthly, use the fill handle to drag the formula to the entire column.
  • Here, the Positive value refers that the percentage has increased and the Negative value refers that the percentage has decreased.

Identifying percentage increase or decrease

That’s how you can determine the percentage increase or decrease formula in Excel.

📕 Read More: 7 Quick Ways to Calculate Average Percentage Increase in Excel


How to Calculate Salary Increase Percentage in Excel

If you want to calculate your salary increase percentage in Excel then you are in the right place. Salary increase percentage means the percentage increase of the salary this year compared to the previous year. We will do the exact thing that you need. To calculate the increased percentage of the salary in Excel, the first thing is to determine the initial salary, payment type, annual salary, etc. which we have given here from cells B5 to C9. follow the given steps to achieve this process.

⬇️⬇️ STEPS ⬇️⬇️

  • Initially, select cell C11.
  • Secondly, write the formula on that cell.

=C8+C9

  • Now press the Enter key.
  • This is the Latest Salary that we have calculated.

Using Excel formula to determine the latest salary

  • Fourthly, select cell C12.
  • Afterward, put the following formula there.

=(C11-C8)/C8

  • After that, tap Enter button.
  • Finally, you will get the desired salary increase percentage as required.

Using Excel formula to determine the salary increased percentage

Truly, this process is very simple to calculate your salary increase percentage in Excel.

📕 Read More: 6 Quick Ways to Calculate Average Percentage of Marks in Excel


📄 Important Notes

You should be aware of the following things while performing the processes mentioned above:

🖊️  You need to be careful while applying the AVERAGE function in Excel.

🖊️  You should be conscious when you intend to use the VBA code.


📝 Takeaways from This Article

If we summarize the whole article, we have got some points.

📌  Initially, we defined the average percentage change in Excel.

📌  Secondly, we used the AVERAGE function to calculate the average percentage change in Excel.

📌  Thirdly, we applied VBA to determine the average formula in Excel.

📌  Afterward, we determined the percentage increase or decrease formula in Excel.

📌  Finally, we showed you how to calculate the salary increase percentage in Excel.


Conclusion

We wish that you would be able to calculate the average percentage change in the Excel formula using this article. As we have shown you a very easy method, you can easily follow this without any hesitation. If you have any skepticism, feel free to ask me in the comment. In the end, to learn more about Excel tactics, we recommend you to visit our website www.ExcelDen.com.


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Jonayed

Jonayed

Hello! My name is Jonayed. I've completed my graduation from BUET in Naval Architecture & Marine Engineering. As Excel is very interesting to me, I like to do various types of research regarding Excel. My inquisitive nature drives me to find solutions to different types of problems with Excel.

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