CAGR calculation
to calculate 3 year CAGR in excel using the rate function do you put in 2 or 3 for periods? I have been working for God knows how longs and my brain just froze. please help
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hello
noone wants to help?
3 periods. Though would just use the formula ([ ]/[ ])^(1/3)-1. Much easier to quickly calculate and check
wow - what a great comment
your Associate must be very proud of you.
Don't know why the MS. If someone likes Rate function more, feel free. Just found the formula to be quick and easy throughout the years
He is the associate you Little Debbie's ding dong
thank you so much. how do I find the “^” in keyboard or excel.
Shift 6
Should be Shift + the "6" key
YAAAAAAASSSSS. This is so much easier. The hard part is remembering to count the periods not the years (so years -1)
The number of years is counted from the end of one year to the end of another year.
You don't count from the beginning of one year to the beginning of another year because the total revenue only exists at the end of the year.
So if the CAGR calculation is from 2017-2019, it would be two years.
^ it’s always one less the number of periods and a formula that works better is =rri() for the n, just do an =count()-1
I have no idea what this means but will try it anyway
god help me if i didn't google this damn formula every damn time i was doing a key investment highlights page for a book
Would advise in your excel to always reference to the cells of the years you are calculating the CAGR for. So where you'd do '^(1/3)', instead of writing 3 I'd reference to the cells where you have 2016 and 2019. So it would look like this '^(1/(A4-A1))'. You could freeze the formula with dollar signs (F4) if you want to drag it down. This way you never make mistakes with the number of periods.
you are amazing. this is great advice.
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