Next Live Training Date:

JHB:9-11 May/ DBN:16-18May

CAGR Excel (Compound Annual Growth Rate)

Calculate CAGR using Excel

One of Excel’s most spectacular and useful features is the tool which it provides for calculating a CAGR. A CAGR measures the rate of return for an investment – such as a mutual fund or bond – over an investment period of say 5 or 10 years. The CAGR can also be referred to as a “smoothed” rate of return as it measures the growth of an investment as if it had grown at a steady rate on an annually compounded basis.

Related Items: CAGR Video Clip, IRR in Excel, IRR Calculator, NPV in Excel

To calculate a CAGR using Excel, one should use the XIRR function.

The XIRR Function Details

XIRR returns the internal rate of return for a schedule of cash flows that is not necessarily periodic. The XIRR function is composed of the main syntax namely values, dates and guess, and these are to be discussed as follows:

XIRR Function Notes

When using the XIRR function of Excel, as a user you will need to pay careful attention, noting the following:

With these amazing features and capabilities it is no surprise that the use of Excel to calculate CAGR is so popular among not only professionals but the home user as well. With the XIRR function, Excel can handle and accurately calculate any return of investment in terms of the compound annual growth rate. With the automatic CAGR function that Excel boasts, calculating large numbers is now as best as done. All you need to do is enter your values in the appropriate cells, and the sit back and relax while Excel does the rest.

Free Tips & Tricks Newsletter

Please fill in your details below to get regular Excel tips and tricks and a free Quick Reference Download!

Handy Tips & Tricks

Excel can help you read large numbers

Excel has a feature in it that can read text or numbers to you. Although its Afrikaans is not great, it will correctly read a large number with all the billions and millions in the right place. So whether you … Continue reading

Shortcut to insert a symbol in Excel

If you regularly work with Excel and use it to make estimates, reports, quotes etc you may need to make use of symbols that are not available on the keyboard e.g. plus minus ( ± ), copyright ( © ), metres squared ( … Continue reading

Just a quick note to say your blog is brilliant. Full of useful bits of info. After your courses, I am by far the best modeller in our office, and we regularly get comments from our business partners on the quality of our models. Thanks for all the help,

– Mike

Video Library & Tutorials //

View Entire Video Gallery ››

Making the same change to multiple worksheets in Excel

Making the same change to multiple worksheets in Excel

Tables in Excel for PowerPivot use

Tables in Excel for PowerPivot use

Excel see formula instead of value 2013

Excel see formula instead of value 2013

Excel Quick Sum 2013

Excel Quick Sum 2013

Some of our Featured Clients