How to calculate growth rate?
The term ���growth rate��� describes the rate of change in the value of a specific metric across a given time period, expressed as a percentage.
 
 Common examples of scenarios where the growth rate is often used are the following:
 
 Company Sales
 Population Figures
 Gross Domestic Product (GDP)
 Inflation Rate
 Under the specific context of financial modeling, the growth rate is most frequently on a quarterly or annual basis (i.e. year-over-year).
 
 More defensible predictions can be made about the future trajectory of a metric in question by determining its historical growth, which can serve as a practical point of reference for forecasting purposes.
 
 However, the metric���s usefulness is still tied to the extent that the underlying drivers are identified and researched in-depth.
 
 By itself, calculating the historical growth is not enough, because what actually caused the past growth and which qualitative factors are likely to determine a metric���s future growth must also be clearly understood.
 
 
 The following formula can be used to calculate the growth rate across two periods.
 
 Growth Rate (%) = (Ending Value �� Beginning Value) ��� 1
 For example, if a company���s revenue was $100 million in 2020 and grew to $120 million in 2021, its year-over-year (YoY) growth rate is 20%.
 
 Growth Rate = ($120 million �� $100 million) ��� 1 = 0.20, or 20%