Calculate Compound Annual Growth Rate

Compound Annual Growth Rate in Excel

Calculating the compound annual growth rate (CAGR) is an essential function regardless of industry. Excel makes this calculation extremely easy.

Going back to College, you calculate the compound annual growth rate by using the following formula below.

= ((End Value/Start Value)^(1/(Periods-1))-1

Use the following data set below as an example.

Compound Annual Growth Rate
Compound Annual Growth Rate

Using the formula above, we can calculate the CAGR from January 2010 to January 2018.

*It is important to correctly number the periods or your calculation will be wrong. In the above example, we are reviewing 9 years.

= ((End Value/Start Value)^(1/(Periods-1))-1

Use this Formula:

=((B12/B4)^(1/9))-1

Compound Annual Growth Rate

For more useful Excel example, check out our other tutorials.

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