Annual Growth Rate

Adrae · Apr 2nd, 2002, 09:32 AM

Anyone know of a function that calculates
Compound Annual Growth Rate?

Thanks

Ricky Morris · Apr 2nd, 2002, 09:45 AM

Try This:

=(Base Yr/End Year)^(1/N)-1

Where N is the number of years.

Jay Petrulis · Apr 2nd, 2002, 09:45 AM

Quote:

On 2002-04-02 08:32, Adrae wrote:
Anyone know of a function that calculates
Compound Annual Growth Rate?

Thanks

Hi,

FV, FVSCHEDULE, RATE, IRR, XIRR, MIRR, PMT, PV are some Excel functions which might help.

If you need continuous compounding, you would create a formula using EXP.

Some UDFs/SUBs have been created to calculate rates for Dietz, Modified Dietz, XMIRR, BAI Iteration and the like.

Please be more specific to get a more detailed answer.

Regards,
Jay

Al Chara · Apr 2nd, 2002, 09:48 AM

The formula for CAGR is the nth root of [(investment value in the end of the period)/(investment value in the beginning of the period)]-1
where n is the number of investment years

or

(Current Val. / Original Val.) ^ (1 / No. of Years) - 1

_________________
Hope this helps.
Kind regards, Al.

[ This Message was edited by: Al Chara on 2002-04-02 08:52 ]

wi_guy · Apr 2nd, 2002, 09:49 AM

the one you may be acter is =Effect....calculates the effective rate of return =Effect(nominal rate, #of compounding periods per yr)

EX: =effect(4%,12) will gave a 4.07 apr

Apr 2nd, 2002, 09:45 AM	#2
Ricky Morris Board Regular Join Date: Mar 2002 Posts: 363	Try This: =(Base Yr/End Year)^(1/N)-1 Where N is the number of years. __________________ It's never too late to learn something new. Ricky

Thread Tools
Show Printable Version Email this Page
Display Modes
Linear Mode Switch to Hybrid Mode Switch to Threaded Mode

Apr 2nd, 2002, 09:32 AM	#1
Adrae Board Regular Join Date: Feb 2002 Location: Chicago, IL USA Posts: 306	Anyone know of a function that calculates Compound Annual Growth Rate? Thanks

Apr 2nd, 2002, 09:48 AM	#4
Al Chara MrExcel MVP Join Date: Feb 2002 Location: Monterrey, Mexico Posts: 1,433	The formula for CAGR is the nth root of [(investment value in the end of the period)/(investment value in the beginning of the period)]-1 where n is the number of investment years or (Current Val. / Original Val.) ^ (1 / No. of Years) - 1 _________________ Hope this helps. Kind regards, Al. [ This Message was edited by: Al Chara on 2002-04-02 08:52 ]

Apr 2nd, 2002, 09:49 AM	#5
wi_guy Board Regular Join Date: Mar 2002 Posts: 50	the one you may be acter is =Effect....calculates the effective rate of return =Effect(nominal rate, #of compounding periods per yr) EX: =effect(4%,12) will gave a 4.07 apr