How to calculate CAGR?

In this lesson you can learn how to calculate CAGR in Excel.

CAGR (Compound Annual Growth Rate) is year-of-year average growth rate over a period of time. Calculating CAGR you can check how much do you earn annualy with your investments.

To calculate CAGR you can use that formula:

= ((FV/PV)^(1/n)) - 1

  • FV stands for Future Value
  • PV stands for Present Value
  • n stands for count of investment years

CAGR formula example Excel


Picture show the example of formula. I think everything is clear.

You can download that spreadsheet here for free.