{"id":459012,"date":"2022-06-07T18:00:11","date_gmt":"2022-06-07T15:00:11","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/how-to-calculate-cagr-in-microsoft-excel\/"},"modified":"2022-06-07T18:00:11","modified_gmt":"2022-06-07T15:00:11","slug":"how-to-calculate-cagr-in-microsoft-excel","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/how-to-calculate-cagr-in-microsoft-excel\/","title":{"rendered":"#How to Calculate CAGR in Microsoft Excel"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3bf25fb8d8a\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3bf25fb8d8a\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/how-to-calculate-cagr-in-microsoft-excel\/#%E2%80%9CHow_to_Calculate_CAGR_in_Microsoft_Excel%E2%80%9D\" >&#8220;How to Calculate CAGR in Microsoft Excel&#8221;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/how-to-calculate-cagr-in-microsoft-excel\/#Organize_the_Investment_Details\" >Organize the Investment Details<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/how-to-calculate-cagr-in-microsoft-excel\/#Enter_the_Formula_for_the_RRI_Function\" >Enter the Formula for the RRI Function<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/how-to-calculate-cagr-in-microsoft-excel\/#Calculating_CAGR_With_a_Forumla\" >Calculating CAGR With a Forumla<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9CHow_to_Calculate_CAGR_in_Microsoft_Excel%E2%80%9D\"><\/span>&#8220;How to Calculate CAGR in Microsoft Excel&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div>\n<img loading=\"lazy\" decoding=\"async\" class=\"type:primaryImage alignnone size-full wp-image-757715\" data-pagespeed-lazy-srcset=\"https:\/\/www.howtogeek.com\/wp-content\/uploads\/2021\/09\/microsoft_excel_hero_1200x675.jpg?width=398&amp;trim=1,1&amp;bg-color=000&amp;pad=1,1 400w, https:\/\/www.howtogeek.com\/wp-content\/uploads\/2021\/09\/microsoft_excel_hero_1200x675.jpg?width=1198&amp;trim=1,1&amp;bg-color=000&amp;pad=1,1 1200w\" sizes=\"auto, 400w, 1200w\" data-pagespeed-lazy-src=\"https:\/\/www.howtogeek.com\/wp-content\/uploads\/2021\/09\/microsoft_excel_hero_1200x675.jpg?width=1198&amp;trim=1,1&amp;bg-color=000&amp;pad=1,1\" alt=\"Microsoft Excel logo on a green background\" width=\"1200\" height=\"675\" src=\"\/pagespeed_static\/1.JiBnMqyl6S.gif\" onload=\"pagespeed.lazyLoadImages.loadIfVisibleAndMaybeBeacon(this);\" onerror=\"this.onerror=null;pagespeed.lazyLoadImages.loadIfVisibleAndMaybeBeacon(this);\"\/><\/p>\n<p>To keep track of an investment such as a mutual fund, you likely want to calculate the CAGR (compound annual growth rate). You can do so in Microsoft Excel using the RRI function and it\u2019s much easier than you might think.<\/p>\n<p>Let\u2019s walk through setting up your data and using the RRI function to calculate the CAGR in Excel.<\/p>\n<h2 role=\"heading\" aria-level=\"2\"><span class=\"ez-toc-section\" id=\"Organize_the_Investment_Details\"><\/span>Organize the Investment Details<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>All you need to calculate the CAGR are the periods and the values for each period. List the years in the first column and amounts in the second as shown below.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-806677\" data-pagespeed-lazy-src=\"https:\/\/www.howtogeek.com\/wp-content\/uploads\/2022\/05\/InvestmentData-ExcelCAGR.png?trim=1,1&amp;bg-color=000&amp;pad=1,1\" alt=\"Periods and amounts for an investment in Excel\" width=\"265\" height=\"225\" src=\"\/pagespeed_static\/1.JiBnMqyl6S.gif\" onload=\"pagespeed.lazyLoadImages.loadIfVisibleAndMaybeBeacon(this);\" onerror=\"this.onerror=null;pagespeed.lazyLoadImages.loadIfVisibleAndMaybeBeacon(this);\"\/><\/p>\n<h2 role=\"heading\" aria-level=\"2\"><span class=\"ez-toc-section\" id=\"Enter_the_Formula_for_the_RRI_Function\"><\/span>Enter the Formula for the RRI Function<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Next, select the cell where you want to calculate the CAGR. This is where you\u2019ll enter the formula for the RRI function.<\/p>\n<p><strong>RELATED:<\/strong> <strong><em>The Basics of Structuring Formulas in Microsoft Excel<\/em><\/strong><\/p>\n<p>The syntax for the function is <code>RRI(periods, present value, future value)<\/code> where all three arguments are required.<\/p>\n<p>Using our data above, we would use this formula to find the CAGR with the RRI function:<\/p>\n<pre>=RRI(A7,B2,B7)<\/pre>\n<p>A7 contains the number of periods in the investment, B2 contains the present value, and B7 contains the future value.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-806676\" data-pagespeed-lazy-src=\"https:\/\/www.howtogeek.com\/wp-content\/uploads\/2022\/05\/RRICellReferences-ExcelCAGR.png?trim=1,1&amp;bg-color=000&amp;pad=1,1\" alt=\"Formula for the RRI function in Excel\" width=\"515\" height=\"275\" src=\"\/pagespeed_static\/1.JiBnMqyl6S.gif\" onload=\"pagespeed.lazyLoadImages.loadIfVisibleAndMaybeBeacon(this);\" onerror=\"this.onerror=null;pagespeed.lazyLoadImages.loadIfVisibleAndMaybeBeacon(this);\"\/><\/p>\n<p>To format the result as a percentage, go to the Home tab and either click the Percent Style button or choose \u201cPercentage\u201d in the Number Style drop-down box.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-806673\" data-pagespeed-lazy-src=\"https:\/\/www.howtogeek.com\/wp-content\/uploads\/2022\/05\/Percentage-ExcelCAGR.png?trim=1,1&amp;bg-color=000&amp;pad=1,1\" alt=\"Format CAGR as a percentage\" width=\"650\" height=\"349\" src=\"\/pagespeed_static\/1.JiBnMqyl6S.gif\" onload=\"pagespeed.lazyLoadImages.loadIfVisibleAndMaybeBeacon(this);\" onerror=\"this.onerror=null;pagespeed.lazyLoadImages.loadIfVisibleAndMaybeBeacon(this);\"\/><\/p>\n<p>As an alternative, you can insert the actual values in the formula instead of the cell references:<\/p>\n<pre>=RRI(5,50,400)<\/pre>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-806675\" data-pagespeed-lazy-src=\"https:\/\/www.howtogeek.com\/wp-content\/uploads\/2022\/05\/RRIConstants-ExcelCAGR.png?trim=1,1&amp;bg-color=000&amp;pad=1,1\" alt=\"RRI formula with constants instead of cell references\" width=\"515\" height=\"275\" src=\"\/pagespeed_static\/1.JiBnMqyl6S.gif\" onload=\"pagespeed.lazyLoadImages.loadIfVisibleAndMaybeBeacon(this);\" onerror=\"this.onerror=null;pagespeed.lazyLoadImages.loadIfVisibleAndMaybeBeacon(this);\"\/><\/p>\n<h2 role=\"heading\" aria-level=\"2\"><span class=\"ez-toc-section\" id=\"Calculating_CAGR_With_a_Forumla\"><\/span>Calculating CAGR With a Forumla<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>While the RRI function does an excellent job of calculating <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.investopedia.com\/terms\/c\/cagr.asp\">the CAGR of an investment<\/a>, you can always do the math by hand or enter that formula into Excel to double-check the RRI formula result.<\/p>\n<p><strong>RELATED:<\/strong> <strong><em>Defining and Creating a Formula<\/em><\/strong><\/p>\n<p>To calculate CAGR, you first divide the future value by the present value. Then, raise the result to an exponent of one divided by the number of periods (years). Finally, subtract one from the result.<\/p>\n<p>Here is the formula for CAGR using our above example and cell references in Excel:<\/p>\n<pre>=(B7\/B2)^(1\/A7)-1<\/pre>\n<p>As you can see in the screenshot below, this formula confirms the result of the RRI function\u2019s formula.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-806674\" data-pagespeed-lazy-src=\"https:\/\/www.howtogeek.com\/wp-content\/uploads\/2022\/05\/CAGRFormula-ExcelCAGR.png?trim=1,1&amp;bg-color=000&amp;pad=1,1\" alt=\"Formula to calculate CAGR in Excel\" width=\"515\" height=\"275\" src=\"\/pagespeed_static\/1.JiBnMqyl6S.gif\" onload=\"pagespeed.lazyLoadImages.loadIfVisibleAndMaybeBeacon(this);\" onerror=\"this.onerror=null;pagespeed.lazyLoadImages.loadIfVisibleAndMaybeBeacon(this);\"\/><\/p>\n<p>Microsoft Excel is a solid <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>lication for keeping track of investments and household finances. So if you\u2019re interested in additional ways it can help you, take a look at these budget functions you can use in Excel.<\/p>\n<\/div>\n<p><script>\n setTimeout(function(){\n  !function(f,b,e,v,n,t,s)\n  {if(f.fbq)return;n=f.fbq=function(){n.callMethod?\n  n.callMethod.apply(n,arguments):n.queue.push(arguments)};\n  if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version='2.0';\n  n.queue=[];t=b.createElement(e);t.async=!0;\n  t.src=v;s=b.getElementsByTagName(e)[0];\n  s.parentNode.insertBefore(t,s) } (window, document,'script',\n  'https:\/\/connect.facebook.net\/en_US\/fbevents.js');\n   fbq('init', '335401813750447');\n   fbq('track', 'PageView');\n  },3000);\n<\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more like this article, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/technology\/\" target=\"_blank\" rel=\"noopener\">Technology category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/www.howtogeek.com\/806670\/cagr-formula-excel\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;How to Calculate CAGR in Microsoft Excel&#8221; To keep track of an investment such as a mutual fund, you likely want to calculate the CAGR (compound annual growth rate). You can do so in Microsoft Excel using the RRI function and it\u2019s much easier than you might think. Let\u2019s walk through setting up your data&#8230;<\/p>\n","protected":false},"author":1,"featured_media":459013,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/www.howtogeek.com\/wp-content\/uploads\/2021\/09\/microsoft_excel_hero_1200x675.jpg?height=200p&trim=2,2,2,2","fifu_image_alt":"","footnotes":""},"categories":[18],"tags":[],"class_list":["post-459012","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/459012","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=459012"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/459012\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/459013"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=459012"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=459012"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=459012"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}