Calculate Evolution Index, product growth rate, or market growth rate from any two percentage values to find the missing third percentage.
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Evolution Index Formula
The evolution index compares a product’s growth rate to the market’s growth rate. An index of 100 means the product is growing at the same rate as the market. Above 100 means the product is growing faster than the market. Below 100 means it is growing slower.
- EI = Evolution Index (%)
- GP = Growth Rate of the Product (%)
- GM = Growth Rate of the Market (%)
The calculator can solve for any one missing value when you enter the other two values:
- Calculate Evolution Index: uses the product growth rate divided by the market growth rate, then multiplies by 100.
- Calculate Growth Rate of the Product: uses the evolution index and market growth rate to find the product growth rate needed to match that index.
- Calculate Growth Rate of the Market: uses the product growth rate and evolution index to estimate the market growth rate implied by those values.
Evolution Index Interpretation
| Evolution Index | Meaning | Simple interpretation |
|---|---|---|
| Above 100 | Product growth is faster than market growth. | The product is gaining relative momentum. |
| 100 | Product growth equals market growth. | The product is keeping pace with the market. |
| Below 100 | Product growth is slower than market growth. | The product is lagging the market. |
Common Product and Market Growth Comparisons
| Product Growth | Market Growth | Evolution Index | Result |
|---|---|---|---|
| 12% | 8% | 150 | Product is growing 1.5 times as fast as the market. |
| 8% | 8% | 100 | Product growth matches the market. |
| 5% | 10% | 50 | Product is growing half as fast as the market. |
Example
Example 1: Calculate the evolution index
If the product growth rate is 15% and the market growth rate is 10%, then:
The evolution index is 150%. The product is growing faster than the market.
Example 2: Calculate the product growth rate
If the evolution index is 125% and the market growth rate is 8%, then:
The product growth rate is 10%.
FAQ
What does an evolution index of 100 mean?
An evolution index of 100 means the product is growing at the same rate as the market. For example, if the product grows by 6% and the market also grows by 6%, the evolution index is 100.
Can the market growth rate be zero?
No, not when calculating the evolution index. The formula divides by the market growth rate, so a market growth rate of zero would create a division by zero. If the market has no growth, the standard evolution index formula is not valid for that comparison.
Is a higher evolution index always better?
A higher evolution index usually means the product is outperforming the market in growth terms. However, you should still check the actual growth rates. A high index based on very small numbers may not be as meaningful as a strong index based on larger, stable growth rates.
