Growth Rate Calculation

💡Growth rate is the change divided by the starting value. You rarely need the exact figure — estimate the fraction and match it to the closest option.

Try it — calculate a growth rate

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Change divided by the starting (old) value.

  1. 1

    Find the change

    7,750 − 6,200 = 1,550

  2. 2

    Divide by the OLD value

    1,550 ÷ 6,200 = 0.25

  3. 3

    As a percentage

    × 100 = 25%

Growth rate ≈ 25%

⏱️ Practice against the clock

A worked example

From 6,200 to 7,750: the change is 1,550 over 6,200, which is about a quarter, so roughly 25%.

Divide by where you started

Growth rate is the change over the starting number, not the finishing one. From 6,200 to 7,750 the change is 1,550, and 1,550 against 6,200 is about a quarter. So roughly 25%.

Dividing by the new number is the classic slip. It gives a smaller figure that answers a different question, so keep the old value firmly on the bottom.

Eyeball it under pressure

You almost never need the rate to a decimal place. Round both numbers, judge what chunk of the base the change is, and grab the nearest option.

Here the jump is about 1,550 on a base near 6,000, plainly around a quarter. Spotting “about a quarter” is faster than computing 25.0%, and on a multiple-choice question it is just as good.

Questions people ask

Is it the change over the old value or the new value?

Always over the old (base) value. Dividing by the new value gives a different, smaller figure that answers a different question.

How do I estimate these under time pressure?

Round both numbers, size up the fraction of the base that the change represents, and pick the nearest option. Exact division is usually a waste of time.

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