# Microsoft Office Application Help - Excel Help forum > Excel Formulas & Functions >  > [SOLVED] Calculate the CAGR

## Bruce

How can you calculate the CAGR (Compounded Annual Growth Rate)?

Say I have 2 numbers and corresponding dates as follows;

1999 - $10000

2003 - $25000

How can I determine the compounded growth from just this information?

Bruce

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## mangesh_yadav

=(25000/10000)^(1/(2003-1999))-1
=25.74%

Mangesh

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## Duke Carey

It's the final number divided by the earlier number raised to the power of 1
over the number of annual periods.  Subtract 1 from that result to get the
CAGR.  In your case, assuming that both the amounts are beginning of period,
the formula would be

=25000/19000^(1/4) - 1

"Bruce" <Bruce@discussions.microsoft.com> wrote in message
news:51715103-9F06-4057-A15F-EF17A07CC266@microsoft.com...
> How can you calculate the CAGR (Compounded Annual Growth Rate)?
>
> Say I have 2 numbers and corresponding dates as follows;
>
> 1999 - $10000
>
> 2003 - $25000
>
> How can I determine the compounded growth from just this information?
>
> Bruce

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## Bruce

Thanks both of you. They both work. Is there an excel function to calc
compound rates? I remember coming across this some time ago but cannot seem
to find it in the help now...

"Duke Carey" wrote:

> It's the final number divided by the earlier number raised to the power of 1
> over the number of annual periods.  Subtract 1 from that result to get the
> CAGR.  In your case, assuming that both the amounts are beginning of period,
> the formula would be
>
> =25000/19000^(1/4) - 1
>
> "Bruce" <Bruce@discussions.microsoft.com> wrote in message
> news:51715103-9F06-4057-A15F-EF17A07CC266@microsoft.com...
> > How can you calculate the CAGR (Compounded Annual Growth Rate)?
> >
> > Say I have 2 numbers and corresponding dates as follows;
> >
> > 1999 - $10000
> >
> > 2003 - $25000
> >
> > How can I determine the compounded growth from just this information?
> >
> > Bruce
>
>
>

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## Mangesh Yadav

not that I know of. But RATE gives the rate for periodic payments.

Mangesh



"Bruce" <Bruce@discussions.microsoft.com> wrote in message
news:F018ED11-B18F-4DC3-849F-D0AF32331808@microsoft.com...
> Thanks both of you. They both work. Is there an excel function to calc
> compound rates? I remember coming across this some time ago but cannot
seem
> to find it in the help now...
>
> "Duke Carey" wrote:
>
> > It's the final number divided by the earlier number raised to the power
of 1
> > over the number of annual periods.  Subtract 1 from that result to get
the
> > CAGR.  In your case, assuming that both the amounts are beginning of
period,
> > the formula would be
> >
> > =25000/19000^(1/4) - 1
> >
> > "Bruce" <Bruce@discussions.microsoft.com> wrote in message
> > news:51715103-9F06-4057-A15F-EF17A07CC266@microsoft.com...
> > > How can you calculate the CAGR (Compounded Annual Growth Rate)?
> > >
> > > Say I have 2 numbers and corresponding dates as follows;
> > >
> > > 1999 - $10000
> > >
> > > 2003 - $25000
> > >
> > > How can I determine the compounded growth from just this information?
> > >
> > > Bruce
> >
> >
> >

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## N Harkawat

Yes using RATE function you can get the CAGR as followis: -
=rate(4,0,-10000,25000)
=25.74%


"Mangesh Yadav" <mangesh.NOSPAMyadav@gmail.com> wrote in message
news:%23llukX1aFHA.580@TK2MSFTNGP15.phx.gbl...
> not that I know of. But RATE gives the rate for periodic payments.
>
> Mangesh
>
>
>
> "Bruce" <Bruce@discussions.microsoft.com> wrote in message
> news:F018ED11-B18F-4DC3-849F-D0AF32331808@microsoft.com...
>> Thanks both of you. They both work. Is there an excel function to calc
>> compound rates? I remember coming across this some time ago but cannot
> seem
>> to find it in the help now...
>>
>> "Duke Carey" wrote:
>>
>> > It's the final number divided by the earlier number raised to the power
> of 1
>> > over the number of annual periods.  Subtract 1 from that result to get
> the
>> > CAGR.  In your case, assuming that both the amounts are beginning of
> period,
>> > the formula would be
>> >
>> > =25000/19000^(1/4) - 1
>> >
>> > "Bruce" <Bruce@discussions.microsoft.com> wrote in message
>> > news:51715103-9F06-4057-A15F-EF17A07CC266@microsoft.com...
>> > > How can you calculate the CAGR (Compounded Annual Growth Rate)?
>> > >
>> > > Say I have 2 numbers and corresponding dates as follows;
>> > >
>> > > 1999 - $10000
>> > >
>> > > 2003 - $25000
>> > >
>> > > How can I determine the compounded growth from just this information?
>> > >
>> > > Bruce
>> >
>> >
>> >
>
>

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## Niek Otten

=RATE(4,0,-10000,25000)

--

Kind Regards,

Niek Otten

Microsoft MVP - Excel

"Mangesh Yadav" <mangesh.NOSPAMyadav@gmail.com> wrote in message
news:%23llukX1aFHA.580@TK2MSFTNGP15.phx.gbl...
> not that I know of. But RATE gives the rate for periodic payments.
>
> Mangesh
>
>
>
> "Bruce" <Bruce@discussions.microsoft.com> wrote in message
> news:F018ED11-B18F-4DC3-849F-D0AF32331808@microsoft.com...
>> Thanks both of you. They both work. Is there an excel function to calc
>> compound rates? I remember coming across this some time ago but cannot
> seem
>> to find it in the help now...
>>
>> "Duke Carey" wrote:
>>
>> > It's the final number divided by the earlier number raised to the power
> of 1
>> > over the number of annual periods.  Subtract 1 from that result to get
> the
>> > CAGR.  In your case, assuming that both the amounts are beginning of
> period,
>> > the formula would be
>> >
>> > =25000/19000^(1/4) - 1
>> >
>> > "Bruce" <Bruce@discussions.microsoft.com> wrote in message
>> > news:51715103-9F06-4057-A15F-EF17A07CC266@microsoft.com...
>> > > How can you calculate the CAGR (Compounded Annual Growth Rate)?
>> > >
>> > > Say I have 2 numbers and corresponding dates as follows;
>> > >
>> > > 1999 - $10000
>> > >
>> > > 2003 - $25000
>> > >
>> > > How can I determine the compounded growth from just this information?
>> > >
>> > > Bruce
>> >
>> >
>> >
>
>

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