Home |
Search |
Today's Posts |
#1
Posted to microsoft.public.excel.worksheet.functions
|
|||
|
|||
Compound Average Annual Growth Rate
Can someone help define the formula to calculate the compound average growth
rate (CAGR) starting with an initial amount which grows or shrinks depending upon the earnings for the year? Is the formula included in the formulae included in Excel? That data is in columns: A: Year B: Year's average interest rate growth or loss C: Value of investment, e,g. starting at $1,000 and changing each year by the rate in column B. D: The CAGR effective to that year. Thank you for your assistance. Pat |
#2
Posted to microsoft.public.excel.worksheet.functions
|
|||
|
|||
Compound Average Annual Growth Rate
What is the CAGR formula (I don't believe I've heard of it before)? Have you
looked at the formulas provided under the "Financial" category in the "Insert Function" window? Is it something like the following? ISPMT(rate,per,nper,pv) - Rate is the interest rate for the investment. - Per is the period for which you want to find the interest, and must be between 1 and nper. - Nper is the total number of payment periods for the investment. - Pv is the present value of the investment. For a loan, pv is the loan amount. Jim -- I appreciate any feedback. Please don''t be scared to say that "Yes" I/someone else did answer your question. Thank you. |
#3
Posted to microsoft.public.excel.worksheet.functions
|
|||
|
|||
Compound Average Annual Growth Rate
It is solving for the rate of return. Rate is the result, not an input
item. In my note I asked if anyone knew of a formula providing the result but listed under another name in the included worksheet functions. Here is an example of how the rate would be calculated. Say you made a single investment in some sort of fund, etc. The first year showed a gain of 5%, the second -3%, fourth +25%, fifth + 6.8%, etc. etc. What I am looking for is the average annual rate of return over the period of time. No one has answered the question so far. "J Sedoff comRemove" <RemoveSageoficar,at,RemoveHotmail<dot wrote in message ... What is the CAGR formula (I don't believe I've heard of it before)? Have you looked at the formulas provided under the "Financial" category in the "Insert Function" window? Is it something like the following? ISPMT(rate,per,nper,pv) - Rate is the interest rate for the investment. - Per is the period for which you want to find the interest, and must be between 1 and nper. - Nper is the total number of payment periods for the investment. - Pv is the present value of the investment. For a loan, pv is the loan amount. Jim -- I appreciate any feedback. Please don''t be scared to say that "Yes" I/someone else did answer your question. Thank you. |
#4
Posted to microsoft.public.excel.worksheet.functions
|
|||
|
|||
Compound Average Annual Growth Rate
To answer your question, RATE and XIRR are the functions which calculate
CAGR. You can use RATE in your situation because you don't have multiple cash flows. Simply do the following: 1. Calculate the ending value of your investment (PV*(1+i1)*(1+i2)...) 2. Use the Rate function to calcuate your CAGR. The formula for Excel's regular financial functions is given in Help under the PV function. If you want to know how XIRR works, Google "Newton Raphson" Regards, Fred. "PatJennings" wrote in message ... It is solving for the rate of return. Rate is the result, not an input item. In my note I asked if anyone knew of a formula providing the result but listed under another name in the included worksheet functions. Here is an example of how the rate would be calculated. Say you made a single investment in some sort of fund, etc. The first year showed a gain of 5%, the second -3%, fourth +25%, fifth + 6.8%, etc. etc. What I am looking for is the average annual rate of return over the period of time. No one has answered the question so far. "J Sedoff comRemove" <RemoveSageoficar,at,RemoveHotmail<dot wrote in message ... What is the CAGR formula (I don't believe I've heard of it before)? Have you looked at the formulas provided under the "Financial" category in the "Insert Function" window? Is it something like the following? ISPMT(rate,per,nper,pv) - Rate is the interest rate for the investment. - Per is the period for which you want to find the interest, and must be between 1 and nper. - Nper is the total number of payment periods for the investment. - Pv is the present value of the investment. For a loan, pv is the loan amount. Jim -- I appreciate any feedback. Please don''t be scared to say that "Yes" I/someone else did answer your question. Thank you. |
Reply |
Thread Tools | Search this Thread |
Display Modes | |
|
|
Similar Threads | ||||
Thread | Forum | |||
Finding Annual Growth Rate | Excel Worksheet Functions | |||
How to get compound annual growth rates in pivot tables. | Excel Worksheet Functions | |||
Compound Annual Growth Rate | Excel Discussion (Misc queries) | |||
What formula do I use to calculate compound annual growth rate (C. | Excel Discussion (Misc queries) | |||
Compound annual growth rate [CAGR] | Excel Discussion (Misc queries) |