**How To Calculate Cagr?**

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 annually with your investments.

There are two ways to calculate CAGR in Excel.

**Method 1.** To calculate CAGR you can use that formula:

**= ((FV/PV)^(1/n)) – 1**

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

**Method 2.** The other way is to use RRI Excel function.

RRI function takes 3 arguments:

In such situation the function in given example will be:

**=RRI(C6,C5,C4)**

The results are the same so it proves that both of the methods are working the same way.

**Template**

You can download the Template here – Download

Further reading: Basic concepts Getting started with Excel Cell References