Sunday, July 17, 2011

How Do I Calculate CAGR in Excel?


1. Lay out the list of your data on a line either vertically or horizontally. Do not skip any spaces because the spreadsheet will interpret them as zero values.
2. Arrange the numbers in exactly the chronological order that they occurred. If the data list is short, you can even identify each year next to the figure. For example,$5,000 2007$6,250 2008$7,000 2009$7,900 2010
3. Use the formula to calculate CAGR using the numbers in you data set.(Last number/first number)^(1/n)-1n is the difference of the years. In this case 2010 - 2007 = 3.
4. Plug in the numbers to find the solution.CAGR = (7,900/5000)^(1/3)-1CAGR = .164 = 16.4 percent annually

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