Find the average yearly growth rate between a start and end value.
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=(B2/A2)^(1/C2)-1Divide the ending value by the beginning value, raise it to 1 ÷ number of years, and subtract 1. CAGR smooths multi-year growth into a single annual rate. Format the result as a percentage.
=(2000/1000)^(1/3)-1→26%Doubling over 3 years ≈ 26%/yr.
=(150000/100000)^(1/5)-1→8.45%Growing from 100,000 to 150,000 in five years is about 8.45% a year.
=RRI(5, 100000, 150000)→8.45%RRI returns the same rate from periods, start value and end value.
RRI does it: =RRI(C2, A2, B2) returns the same rate from periods, present, and future values.
Use the number of years between the first and last value, not the number of data points. Five yearly values span four periods.
Yes. If the ending value is lower than the starting value, the result is a negative rate.
The ratio of the two values is negative. CAGR is only meaningful when both the start and end values are positive.
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