## CAGR function in Excel

There is no function in Excel that can calculate CAGR directly. However, another function can be used to calculate CAGR. We will introduce a function that can find the CAGR, which is smoother than using the CAGR formula, so if you have any trouble about CAGR formula, please try using these function.

### Functions for which CAGR can be calculated

#### RRI function

**=RRI(nper,pv,fv)**

#### POWER function

**=POWER(number,power)**

#### GEOMEAN function

**=GEOMEAN(number1,[number2],…)**

### Use RRI function

The RRI function is originally intended to calculate what percentage of investments or savings should be invested until the target amount is reached, but it can also be used to calculate CAGR. The format of the RRI function for CAGR is =RRI(Periods,Beginning value,Ending value).

Total Time: 1 minute

#### Enter a formula

Enter **=RRI(3,B2,B5)** in any cell.

#### CAGR is calculated

Press **Enter** to calculate the CAGR.

#### Set the percent style

Press **Ctrl** + **Shift** + **5** to set a percent style to make it easier to understand.

### Use POWER fuction

The POWER function is a function to calculate powers. The formula for obtaining CAGR is =POWER(Ending Value/Begining Value,1/Periods)-1.

Enter **=POWER(B5/B2,1/3)-1** in any cell.

Press **Enter** to calculate the CAGR.

Press **Ctrl** + **Shift** + **5** to set a percent style to make it easier to understand.

### Use GEOMEAN function

The GEOMEAN function returns the geometric mean of an array or range of positive data. The formula =GEOMEAN(range)-1 is used to find the CAGR. The range argument specifies the cell in which the year-to-year comparison was calculated.

First calculate the year-to-year comparison for each year.

Press **Shift** + **↓ **(Down Arrow key) to select cells C3 to C5.

Enter **=B3/B2** in cell C3.

Press **Ctrl** + **Enter** copied the formulas to all columns and the year over year ratio was obtained.

Enter **=GEOMEAN(C3:C5)-1** in any cell.

Press **Enter** to calculate the CAGR.

Press **Ctrl** + **Shift** + **5** to set a percent style to make it easier to understand.

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