CAGR is the Compound Annual Growth Rate, which is the same for all years.In simple words, CAGR help to measures how much you have earned on your investment every year. Compound Annual Growth Rate is calculated for an investment over a period of years. As the name implies, it is an average growth year-over-year for a given period. What is CAGR?ĬAGR stands for the Compound Annual Growth Rate. In this chapter of CAGR, we will discuss different methods to calculate the CAGR, especially RRI() and RATE() functions. Because, by calculating the CAGR, one can find out the average growth rate over your investment for a period of time (like 5 years, 6 years, and more). CAGR is calculated for an investment over a period of years.ĬAGR is a bit complicated topic to understand for beginners but interesting too. You can use RRI(), RATE(), POWER, and other Excel functions to calculate CAGR. Excel does not have any direct formula to calculate it. Next → ← prev How to calculate CAGR in Excel?ĬAGR refers to the Compound Annual Growth Rate.
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