What CAGR means
CAGR (compound annual growth rate) is the smoothed yearly growth from a start value to an end value over n periods. Searches for cagr formula excel usually want one of the formulas below.
Three common formulas
Assume start in B2, end in B10, and n = number of years between them (e.g. 8 if 2017→2025).
=(B10/B2)^(1/8)-1
Excel 2013+ / Microsoft 365:
=RRI(8, B2, B10)
Equivalent with POWER:
=POWER(B10/B2, 1/8)-1
Format the result as Percentage.
Period count tips
| Situation | n |
|---|---|
| Year-end 2020 to year-end 2024 | 4 |
| Monthly series spanning 36 months | 3 (years) or use months and annualize carefully |
| Start = 0 or negative | CAGR not meaningful—check data first |
Chart the growth path
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