If you average the two percentages you will make an error and won’t get the actual percentage. So, you can’t simply average these two percentages to find out the average percentage. Here the base of the percentage sales of factory A for Automobile is the total automobile sales of the company and the base of the percentage sales of factory A for Parts is the total parts sales of the company. The following example will give you a clear idea.Ĭonsider the following dataset where you have the percentage sales of factory A (percentage of the total sales of the company) for Automobile and Parts. You must know the base of the percentages and need to act accordingly. You can’t just simply apply the AVERAGE function function to all the percentages. Understanding Basics of Average Percentage in ExcelĬalculating the average of the percentages is a tricky subject. AARG or simple average percentage increase helps determine the sales growth of a company.Īverage percentage increase = Summation of percentage increase in all the period/ Number of period AARG is used when the growth in a year is independent of the growth of the previous year. While in AARG the percentage increase over a number of years is simply averaged. It can be an effective way to find out your savings interest. In CARG, the compounding effect is considered and each year growth is compounded in the following year. There is another type of annual growth rate which is known as the compound annual growth rate (CARG). When the period is in the year, the average percentage increase is known as the average annual growth rate (AAGR). The period can be in any unit of time such as day, month, year, etc. The average growth per period over a number of periods is called the average percentage increase. Related Articles What Is Average Percentage Increaseīefore calculating the average percentage increase, first discuss what is average percentage increase is.
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