How to Calculate Compound Annual Growth Rate (CAGR) in Excel
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Do you want to calculate the compound annual growth rate (CAGR) of an investment over a period of years? If so, you can use the RRI function in Excel.
This formula will allow you to calculate the CAGR for any given set of data.
In this video post, we will show you how to use the RRI function in Excel to calculate CAGR. We will also provide an example so that you can see how it works!
Lets see the traditional mathematical equation or formula to find CAGR or Copound Annual Growth Rate below;
((Ending Value/Beginning Value)^(365/No. of Days))-100
The RRI function in Excel is very similar to this equation, except that it uses intervals instead of days.
Here is the formula for the RRI function: =RRI(number_of_intervals, start_value, end_value)
In order to use this function, you will need to enter the following information into Excel:
number of intervals: This is the number of times that you want Excel to calculate the growth rate.
start value: This is the starting value for your calculation.
end value: This is the ending value for your calculation.
For example, if you want to calculate the CAGR for a five-year period, you would use the following formula: =RRI(30, 0, 100000)
This will tell Excel to calculate the growth rate for 30 intervals (five years), starting with 0 and ending with 100000.
If you want to calculate the CAGR for a one-year period, you would use the following formula: =RRI(12, 0, 10000)
This will tell Excel to calculate the growth rate for 12 intervals (one year), starting with 0 and ending with 10000.
As you can see, the RRI function in Excel is a very versatile tool for calculating CAGR. Try it out today and see how easy it is to use!
If you want to calculate the compound annual growth rate (CAGR) of an investment over a period of years, you can use the RRI function in Excel. This formula will allow you to calculate the CAGR for any given set of data. In this video post, we will show you how to use the RRI function in Excel to calculate CAGR. We will also provide an example so that you can see how it works!
Table of Content;
00:00 INTRODUCTION
00:40 CAGR In Excel
08:00 conclusion
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