Thread: Growth Rate
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Default Growth Rate

Hello: Apologizes for this is probably more of a math question, but
since this is such a great group wanted to try.

Here is my issue. I'm performing a growth rate calculation and then
applying that growth to project a full-year estimate. Everything looks
good. However, if I try to add up the parts, I get a different answer
than if I do the calculation against the whole. Any thoughts?

Example Data Below:

Neighborhood A
Year 1 105YTD 245Full-Year
Year 2 120 ?
YTD Growth = (120/105)-1 = 14%
Applying the 14% to 245 I get 280 for a full-year estimate.

Neighborhood B
Year 1 73YTD 197Full-Year
Year 2 112 ?
YTD Growth (112/73)-1=53%
Applying the 53% I get a full-year estimate of 302

TOTAL
Year 1 178YTD 442
Year 2 232 ?
YTD Growth (232/178)-1=30%
Applying the 30% to 442 I get 575.

My issue is 280 + 302 does not equal 575. Any thoughts?