How to Calculate CAGR in Google Sheets (Easiest Way in 2024)

How to Calculate CAGR in Google Sheets

The Compound Annual Growth Rate (CAGR) is a useful measure to understand the growth of an investment over a period of time. Here's how you can calculate it in Google Sheets:

Step 1: Input Your Data

In column A, input the years or periods of your investment. In column B, input the value of your investment at the end of each period.

For example: 

Step 2: Use the CAGR Formula

The CAGR formula calculates the rate at which an investment grows annually over a period of time. You can use the following formula in Google Sheets:

=POWER(B4/B2, 1/(ROW(A4)-ROW(A2)))-1

Where:

• B4 is the cell with the ending value of your investment.
• B2 is the cell with the beginning value of your investment.
• A4 and A2 are the cells representing the end and start periods of your investment, respectively.

Below is our calculation:

Step 3: Format as Percentage

After entering the formula, the result might not automatically display as a percentage. To format it, click on the cell with the result, then navigate through the menu Format > Number > Percent.

We hope that this article has helped you and given you a better understanding of how to calculate CAGR in Google Sheets. If you enjoyed this article, you might also want to check out our travel itinerary template in Google Sheets and how to find the max value in Google Sheets.