CAGR -- How?

  • Thread starter Thread starter Peter
  • Start date Start date
Hi Peter,

Compounded Annual Growth is calculated as....

(Current Value/Base Value)^(1/# of years) - 1


A1= Current Value (2nd Value)
A2= Base Value (1st Value)
A3 =Years

=(A1/A2)/(1/A3)-1

Hope that helps.

Regards,
Kevin
 
Whoops


=(A1/A2)^(1/A3)-1


Kevin Stecyk said:
Hi Peter,

Compounded Annual Growth is calculated as....

(Current Value/Base Value)^(1/# of years) - 1


A1= Current Value (2nd Value)
A2= Base Value (1st Value)
A3 =Years

=(A1/A2)/(1/A3)-1

Hope that helps.

Regards,
Kevin
Click to expand...
 
Hi Peter!

Another way is to use the RATE function:

=RATE(5,0,1000,-1500,0,0)
Returns: 8.44717711976985%

I'd go for the formula usually
=(FV/PV)^(1/NPER)-1

However the RATE function is pretty flexible.

--
Regards
Norman Harker MVP (Excel)
Sydney, Australia
(e-mail address removed)
Excel and Word Function Lists (Classifications, Syntax and Arguments)
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