CAGR function in Excel

  • Thread starter Thread starter ExcelMonkey
  • Start date Start date
E

ExcelMonkey

does anyone know if Excel has a built in Compounded Annual Growth Rat
(CAGR) function in its library of funcitons? I know I can build on
myself, but am wondering if it already exists. Could it be in the Bon
funciton categories? Don't use them so I don't know.

It would take the following variables:

Periods = A
First Period = B
Last Period = C

The formula would be:

CAGR = ((C/A)^(1/A))-1

Thank-yo
 
The formula I have for CAGR is

[(Value at end of N periods)/(Initial Value)]^(1/N) - 1

Assuming in your example that B is the initial value and C is the final value,
the above is equivalent to (C/B)^(1/A) - 1.

That is different from what you show (i.e. C/B, not C/A)

Excel has a RATE function which takes the argument number of periods, payment,
present value, and future value. That function, with a payment of 0, should
give you the correct result. Assuming the number of periods is in A1, initial
(present) value in B1 and it's positive, final (future) value in C1 and it is
also positive, it would look like this:

=RATE(A1,0,-B1,C1)

There's more information in Help for RATE and PV if you need it.
 
Back
Top