Home |
Search |
Today's Posts |
#1
|
|||
|
|||
CAGR formula - Ajit
What is formula for CAGR (Compounded Annual Growth Rate)? e.g. if I take
a unit of Rs.10/- the price of which increases to Rs.13/- after 3 years, what is the CAGR? Is there any readymade function to calculate CAGR in Excel? Ajit -- Knowldege is Power |
#2
|
|||
|
|||
"Ajit Munj" wrote...
What is formula for CAGR (Compounded Annual Growth Rate)? e.g. if I take a unit of Rs.10/- the price of which increases to Rs.13/- after 3 years, what is the CAGR? Is there any readymade function to calculate CAGR in Excel? =(13/10)^(1/3)-1 Or if you believe you must use a formula, =RATE(3,0,-10,13) |
#3
|
|||
|
|||
"Ajit Munj" wrote: What is formula for CAGR (Compounded Annual Growth Rate)? e.g. if I take a unit of Rs.10/- the price of which increases to Rs.13/- after 3 years, what is the CAGR? Is there any readymade function to calculate CAGR in Excel? Ajit -- Knowldege is Power Ajit, try this formula: =+(E3/B3)^(1/(COUNT(B3:E3)-1))-1 Where E3 is the last year for your CAGR calc & B3 is the beginning year. The count function will determine the number of years the CAGR is based on. It is derived from the following equation: CAGR = (Ct /C0)(1/t)-1 In other words for a 3 year CAGR take the value in year three and divide by the value in year zero. Then take that result and raise it to the 1/3 power. Then subtract one. I hope this helps! John |
Reply |
Thread Tools | Search this Thread |
Display Modes | |
|
|
Similar Threads | ||||
Thread | Forum | |||
Polynimial trandline formula | Charts and Charting in Excel | |||
how do i write a formula and keep in in formula form, so it DOESN. | Excel Discussion (Misc queries) | |||
Match / Vlookup within an Array formula | Excel Discussion (Misc queries) | |||
Excel 97 - Adding Every 8th Row - Formula should work, but doesn't | Excel Worksheet Functions | |||
Help with array formula | Excel Worksheet Functions |