7/12/2023 0 Comments Cagr formula excelOne great trick is to use the RATE function in Excel. You just apply the same growth rate each period to get to the ending value. ![]() It doesn’t matter what the actual ups and downs are in the intervening results. ![]() Format it as a percentage value by clicking on the percentage () symbol. ![]() Investopedia has a great definition of CAGR:Ĭompound annual growth rate (CAGR) is the rate of return that would be required for an investment to grow from its beginning balance to its ending balance, assuming the profits were reinvested at the end of each year of the investment’s lifespan.Ī simple way of saying it is that the same growth rate is applied to each of (n) periods, taking you from the beginning value (BV) to the ending value (EV). Press Enter to assign the formula to cell E3.
0 Comments
Leave a Reply. |