function help

  • Thread starter Thread starter suzannne
  • Start date Start date
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suzannne

I was asked to do a formula in Excel and I am not even
sure what the formula does. It is called a CAGR% and what
I was told it is that it will calculate the percent growth
in an area of business. Does anyone know how I would do
this? Thanks.
 
Cumulative Average Growth Rate

((Ending Value/Starting Value)^(1/#periods))-1


Example:

Sales Growth over 5 years

(100/50)^(1/5) -1 = 14.9%

PC
 
Hi Suzanne

Compound Average Growth Rate?

i = (FV/PV)^(1/n)-1

Where:
FV = Value at end of periods counted by n
PV = Value at start of periods counted by n
n = number of periods

i will be the rate per period.

You can calculate variously in Excel.

From formula above.
Or:
=RATE(nper,pmt,pv,fv,type,guess)
Note that starting value (PV) is input as negative and end value (FV)
as positive. The rate returned will be the rate per period counted by
NPER argument
Or:
=XIRR(values,dates,guess)
Returns the annual effective growth rates.

All are fairly well covered in Help but by all means give a few
examples of your dates and the figures and they can be slotted into
formulas with appropriate proofs and checks that all is working OK.

--
Regards
Norman Harker MVP (Excel)
Sydney, Australia
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Excel and Word Function Lists (Classifications, Syntax and Arguments)
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Hi Suzanne,
that's easy to look up in Google Groups advanced search because
there is only one word to look up and it is very unique how could you
go wrong. So to find several replies covering more aspects than
any single post that would be in reply to your question.

http://groups.google.com/advanced_group_search?q=group:*Excel*&num=100

Find all the words: CAGR

be sure to click on the "View Thread (xx articles)" hyperlinks so you see the
each entire thread instead of a single posting.
for each thread.

More on searching newsgroups on my xlnews.htm page,
more on searching for newsgroups and other things on my search.htm page.

Of course there is also Excel HELP file which usually helps.

HTH,
David McRitchie, Microsoft MVP - Excel [site changed Nov. 2001]
My Excel Pages: http://www.mvps.org/dmcritchie/excel/excel.htm
Search Page: http://www.mvps.org/dmcritchie/excel/search.htm
 
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