Calculating CAGR in Excel

Tutorial URL:
Country
India

http://techtites.com/2014/01/21/calculate-cagr-microsoft-excel/
Subject Descriptor

Units
National
Gross domestic product, constant prices
currency
% growth

Scale
Billions

Source: International Monetary Fund, World Economic Outlook Database, October 2013

Method 1: Direct calculation

Syntax

(Ending value / Beginning value)^(1/n) - 1

where: n = number of years

Option 1:
Option 2:

=(O$5/F$5)^(1/9)-1
=(O$5/F$5)^(1/($O$4-$F$4))-1

7.60%
7.60%

Method 2: Using POWER function in Excel

Syntax

POWER(number, power)

Where:

Number: The base number. It can be any real number.

Power: The exponent to which the base number is raised.

Option 1:
Option 2:

=POWER(O$5/F$5,1/9)-1
=POWER(O$5/F$5,1/($O$4-$F$4))-1

7.60%
7.60%

Method 3: Using RATE function in Excel

Syntax

RATE(nper, pmt, pv, [fv], [type], [guess])

Where:

Nper: The total number of payment periods in an annuity.

Pmt: The payment made each period and cannot change over the life of the annu
Pv: The present value the total amount that a series of future payments is wor
Fv: The future value, or a cash balance you want to attain after the last payment

Option 1:
Option 2:

=RATE(9,,-F$5,O$5)
=RATE($O$4-$F$4,,-F$5,O$5)

7.60%
7.60%

oft-excel/
2003
30,058

2004

2005

2006

2007

2008

2009

2010

2011

32,422

35,432

38,715

42,509

44,164

47,908

52,961

56,314

7.9%

9.3%

9.3%

9.8%

3.9%

8.5%

10.5%

6.3%

ase, October 2013

Note: This method requires you to know the number of years

Note: This method adds a degree of flexibility because you don't need to calculate the number of y

Note: This method requires you to know the number of years

Note: This method adds a degree of flexibility because you don't need to calculate the number of y

nge over the life of the annuity. Typically, pmt includes principal and interest but no other fees or taxes. If pm
s of future payments is worth now.
ttain after the last payment is made. If fv is omitted, it is assumed to be 0 (the future value of a loan, for exa

Note: This method requires you to know the number of years

Note: This method adds a degree of flexibility because you don't need to calculate the number of y

2012
58,137
3.2%

alculate the number of years

alculate the number of years

other fees or taxes. If pmt is omitted, you must include the fv argument.
value of a loan, for example, is 0).

alculate the number of years