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Thread: Annual Growth Rate

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

    Thanks

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    Try This:

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

    Where N is the number of years.


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    MrExcel MVP Jay Petrulis's Avatar
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    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

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    MrExcel MVP Al Chara's Avatar
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    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 ]

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    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



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