什么是年均复合增长率(Compound Annual Growth Rate,CAGR)? CAGR是指一项投资在特定时期内的年度增长率。 CAGR的计算。公式 CAGR通过总增长率百分比的N次方根求得,N相等于有关时期内的年数,具体公式如下: CAGR = (现有价值/基础价值)^(1/N) - 1
DefinitionFormulaUnderstanding the MathExample Home Finance TVM Compound Annual Growth Rate Compound Annual Growth RateCompound annual growth rate (CAGR) is a single annual rate that captures the compounded growth of an investment or loan over multiple years. Given an investment’s value at time 0 ...
See Also: Price Earnings Growth Ratio Analysis Value Drivers: Building Reliable Systems to Sustain the Growth of the Business Income Statement Balance Sheet Cash Flow Statement Compound Annual Growth Rate Definition (CAGR) Definition The compound annual
the investment by the beginning value to find the total growth rate. This is then taken to the Nth root where the N is the number of years money has been invested. Finally, one is subtracted from product to arrive at the compound annual growth rate percentage. Here’s what it looks ...
The CAGR formula is calculated using the ending value (EV), beginning value (BV), and the number of years being evaluated (n). There is no universally accepted “good” CAGR as it depends on a benchmark. Sources Chaluvadi, S. (2022). Compound Annual Growth Rate. Scripbox. Retrieved fr...
If we remove all intermediate amounts from the selected range of cells, the function will return an accurate compound annual growth rate of 5.39%. The first value in the range of cells must be a negative number. Read More:Excel Formula to Calculate Average Annual Compound Growth Rate ...
Method 1 – Calculate the Compound Annual Growth Rate in Excel This is the basic formula: =((End Value/Start Value)^(1/Time Periods)-1 This is the sample dataset. Steps: Select any cell in your dataset (Here,E5) to store theCAGR. ...
If you want to calculate theCAGR(Compound Annual Growth Rate), then your best bet is to useMicrosoft Excelto get the job done. You will have to use theRRI functionto complete this task, but don’t worry, it’s not a difficult one to accomplish at all. ...
The CAGR formula gives an annualized rate of return, which is useful for comparing the performance of different investments over time. What the CAGR Can Tell You The compound annual growth rate isn’t a true return rate, but rather a representational figure. It is essentially a number that...
Understanding Compound Annual Growth Rate (CAGR) The CAGR is a mathematical formula that provides a smoothed rate of return. It results in apro formanumber that tells you what an investment yields on an annually compounded basis. It indicates to investors what they really have at the end of ...