Excel: Calculating Compound Annual Growth Rate (CAGR) - Five methods

I demonstrate five different methods for calculating the compound annual growth rate (CAGR) with Excel, including manual calculations and Excel formulas. I also explain the rule of 72, an essential financial rule useful for estimating the time it takes for an investment to double.

As a bonus, I show a formula to figure out the future value of an amount without manual calculations.

Chapters:

00:00 Introduction
00:34 Setting up the Example Scenario
02:23 Applying the Rule of 72
03:50 Calculating CAGR: Manual Method
04:03 Calculating CAGR: Using Formulas and Excel Functions
06:51 Predicting Future Value of Investment
08:30 Addressing Market Fluctuations and Conclusion

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#excel #chrismenard #cagr

[fatemeazizi]

What are the limitations of the CAGR method?

[dudeunkown]

Great video...just one question so what if we are calculating cagr for net income and at yr 1 the income is negative and yr 4 it is to profit in other words....what would be the starting and ending value...in those cases....or we don't generally calculate cagr for net income....? Just for market cap and revenues....?