CAGR

  • Thread starter Thread starter saeedmahmoodraja
  • Start date Start date
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saeedmahmoodraja

Is there any built-in function for CAGR calculations in
EXCEL? This is very commonly used formula in the
financial industry.
 
Hi Saeedmahmoodraja!

For built in function for CAGR see RATE

To get the rate in annual terms the NPer argument would need to be in
years.

Example:

1000 grows to 3000 in 9 years:

=RATE(9,0,-1000,3000,0,0)
Returns: 12.9830963909752%

But for formula approach:
=(3000/1000)^(1/9)-1
Returns: 12.9830963909753%

If fractions of a year are involved you might use the XIRR function:

Where
B4: -1000
B5: 3000
A4: 23-Jan-1995
A5: 18-May-2004
=XIRR(B4:B5,A4:A5,0)
Returns: 12.5058784179688%
 

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