Explanation
CAGR stands for Compound Annual Growth Rate.
CAGR is the average rate of return for an investment over a period of time.
There are several ways to calculate CAGR in Excel.
We have these values already in column E so we can use them directly in GEOMEAN the function.
Geometric mean can be used to calculate average rate of return with variable rates.
RRI Function
The Excel RRI function returns an equivalent interest rate for the growth of an investment.
you’re able to use RRI to calculate Compound Annual Growth Rate (CAGR) in Excel.
