Compound annual growth rate can be calculated using the below formula. How to calculate averagecompound annual growth rate in excel. Create a cagr calculator in excel using arithmetic equation. Cagr calculator compound annual growth rate formula. The easiest way to calculate compound annual growth rate in excel is by using the rri function, which is designed to return an equivalent interest rate on a loan or investment over a specific period based on the present value, future value and the total number of periods. We can use the formula above to calculate the cagr. Cagr calculator is a readytouse excel template that helps you calculate cagr rate, period and final value for a given investment. Download cagr calculator excel template exceldatapro. Cagr or compound annual growth rate is one the most often used financial tool to evaluate an investment over a time period you can use our online cagr calculator to easily get the cagr value with indepth table report and chart graphics.
As the name says, it is nothing but the annual growth rate a business has over a period of time. And this value is very useful in comparing performances with the past rate of return and also used as a measure to find the future value. Cagr formula calculator examples with excel template educba. It is the annual rate of return of investment for a specific tenure. In the case of no internet access you can use microsoft excel linux alternative for excel is. Cagr is the abbreviation for compound annual growth rate.
This cagr calculator will help you determine the compound annual growth rate of an investment. Next, raise this result to the power of 1 divided by the number of years. Know how to calculate cagr or compound annual growth rate in excel for your investments. Rri nper, pv, fv nper is the total number of periods. Compound annual growth rate, or cagr, is a tool to show smoothed out returns on a given investment over time. Cagr stands for compound annual growth rate, which is the annual average rate of return for an investment over a period of time. You can calculate cagr in excel using the rate function. Personal use not for distribution or resale how to calculate cagr in excel.
What is the formula for calculating compound annual growth rate cagr in excel. Cagr formula in excel 4 easy to follow examples automate excel. This article is talking about ways to calculate the average annual growth rate aagr and compound annual growth rate cagr in excel. However, simply use the rri function in excel to calculate the compound annual growth rate cagr of an investment over a. Cagr calculator is a readytouse excel template that helps you calculate cagr rate, time period and final value for a given investment. Cagr formula based on the power function cagr formula based on the irrxirr function the workbook demonstrates different ways to calculate the compound annual growth rate cagr in excel.
To calculate the compound annual growth rate in excel, there is a basic formula end valuestart value 1periods 1. The rate, pv, fv and nper functions in excel can be used to calculate each of the four variables associated with the cagr formula. What is the formula for calculating compound annual growth. To calculate compound annual growth rate cagr in excel, the average rate of return for an investment over a period of time, you can use several approaches. Cagr formula calculator examples with excel template. The cagr formula is a way of calculating the annual percentage. Cagr is a great measure of growth, as it isolated the effect of. How to calculate cagr compound annual growth rate in excel. You can use this free online cagr calculator to determine the percentage returned on a specific investment or an entire portfolio.
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