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The Excel RRI function returns an equivalent interest rate for the growth of an investment. You can use RRI to calculate Compound Annual Growth Rate (CAGR) in Excel.
CAGR with the RRI function. In Excel 2013 and later, you can use the RRI function to calculate CAGR with a simple formula. The formula in H9 is: = RRI (B11,C6,C11) where C11 is the ending value in year 5, C6 is the starting value (initial investment), and B11 is the total number of periods.
Aug 29, 2024 · RRI function. The first and the easiest function to calculate CAGR is the RRI function. It returns the interest rate that applies to a loan to equate its present value to its future value. Interestingly, that’s exactly what CAGR does. To find CAGR using the RRI function. Step 1) Write the RRI function as below.
May 3, 2023 · In this tutorial, we won't be digging deeply in arithmetic, and focus on how to write an effective CAGR formula in Excel that allows calculating compound annual growth rate based on 3 primary input values: investment's beginning value, ending value, and time period.
Dec 2, 2022 · CAGR formula in Excel. The basic CAGR formula is : CAGR = (EV ÷ BV) ^ (1 ÷ n) – 1. EV = Ending Value; BV = Beginning Value; n = Periods between Beginning and Ending; Using the CAGR formula in Excel. Once we know the basic calculation, it is easy enough to apply the CAGR formula in Excel. The formula in Cell C15 is: =(C9/C4)^(1/C11)-1. C9 ...
May 14, 2024 · The Excel RRI function is frequently used to calculate an investment’s compound annual growth rate (CAGR), which measures the growth of an investment as if its value had steadily grown at a consistent rate on an annualized basis, including the effects of compounding.
Generally it is used to calculate the Compound Annual Growth Rate (CAGR). It returns the interest rate for the given period of time having future and present value of investment. The mathematical formula to calculate CAGR or RRI value is shown below. RRI or CAGR = [ (FV/PV) ^ (1/nper)] - 1.
Jun 7, 2022 · To calculate CAGR, you first divide the future value by the present value. Then, raise the result to an exponent of one divided by the number of periods (years). Finally, subtract one from the result. Here is the formula for CAGR using our above example and cell references in Excel: =(B7/B2)^(1/A7)-1.
Jan 26, 2023 · In Excel, you can use the RRI function to calculate the compound annual growth rate (CAGR) of an investment. Using the RRI function to get the CAGR. The RRI function has the following syntax: RRI (nper, pv, fv) Where: nper is the total number of periods for the investment. pv is the present value of the investment.
This article describes the formula syntax and usage of the RRI function in Microsoft Excel. Description. Returns an equivalent interest rate for the growth of an investment. Syntax. RRI (nper, pv, fv) The RRI function syntax has the following arguments. Nper Required. Nper is the number of periods for the investment. Pv Required.
