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Growth Rate

Growth rate is a metric that quantifies the change in a quantity over time, typically expressed as a percentage or factor. It is widely used in business, economics, and technology to measure progress, such as user acquisition, revenue increases, or performance improvements. In software development, it helps track the expansion of systems, teams, or key performance indicators (KPIs).

Also known as: Growth Percentage, Rate of Growth, Expansion Rate, YoY Growth, MoM Growth
🧊Why learn Growth Rate?

Developers should understand growth rate to analyze and optimize system scalability, user engagement, and business metrics in applications like e-commerce or social platforms. It is essential for data-driven decision-making, capacity planning, and setting realistic goals in agile or DevOps environments. For example, calculating monthly active user growth helps prioritize feature development and infrastructure investments.

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