Formula [edit] ... CAGR is defined as: ... {\displaystyle \mathrm {CAGR} (t_{0},t_{ ... is the number of years. Actual or normalized values may be used for calculation ...
Note: in other words, to calculate the CAGR of an investment in Excel, divide the value of the investment at the end by the value of the investment at the start ...
The CAGR formula involves dividing the ending value by the beginning value, raising that amount to the inverse number of periods (1 / # of periods), ...
The Compound Annual Growth Rate formula requires only the ending value of the investment, the beginning value, and the number of compounding years to calculate.
The compound annual growth rate (CAGR) is the rate of return that would be required for an investment to grow from its beginning balance to its ending one.
To calculate the CAGR of an investment: Divide the value of an investment at the end of the period by its value at the beginning of that period. Raise the result to an exponent of one divided by the number of years. Subtract one from the subsequent result.
