## How to calculate average/compound annual growth rate in Excel?

This article is talking about ways to calculate the Average Annual Growth Rate (AAGR) and Compound Annual Growth Rate (CAGR) in Excel.

**Calculate compound annual growth rate in Excel****Calculate compound annual growth rate with XIRR function in Excel****Calculate Average annual growth rate in Excel**

#### Calculate Compound Annual Growth Rate in Excel

To calculate the Compound Annual Growth Rate in Excel, there is a basic formula **=((End Value/Start Value)^(1/Periods) -1**. And we can easily apply this formula as following:

**1**. Select a blank cell, for example Cell E3, enter the below formula into it, and press the **Enter **key. See screenshot:

=(C12/C3)^(1/(10-1))-1

Note: In the above formula, C12 is the cell with end value, C3 is the cell with start value, 10-1 is the period between start value and end value, and you can change them based on your needs.

**2**. In some cases, the calculation result may not format as percentage. Please keep selecting the calculation result, click the **Percent Style** button on the** Home** tab to change the number to percentage format, and then change its decimal places with clicking the **Increase Decimal** button or **Decrease Decimal** button . See screen shot:

#### Calculate compound annual growth rate with XIRR function in Excel

Actually, the XIRR function can help us calculate the Compound Annual Growth Rate in Excel easily, but it requires you to create a new table with the start value and end value.

**1**. Create a new table with the start value and end value as the following first screen shot shown:

Note: In Cell F3 enter =C3, in Cell G3 enter =B3, in Cell F4 enter =-C12, and in Cell G4 enter =B12, or you can enter your original data into this table directly. By the way, you must add a minus before the End Value.

**2**. Select a blank cell below this table, enter the below formula into it, and press the **Enter** key.

=XIRR(F3:F4,G3:G4)

**3**. For changing the result to percentage format, select the Cell with this XIRR function, click the **Percent Style** button on the **Home** tab, and then change its decimal places with clicking the **Increase Decimal** button or** Decrease Decimal **button . See screen shot:

#### Quickly save the CAGR table as a mini template, and reuse with only one click in future

It must be very tedious to refer cells and apply formulas for calculating the averages every time. Kutools for Excel provides a cute workaround of **AutoText** utility to to save the range as an AutoText entry, which can remain the cell formats and formulas in the range. And then you will reuse this range with just one click.

#### Calculate Average Annual Growth Rate in Excel

To calculate the Average Annual Growth Rate in excel, normally we have to calculate the annual growth rates of every year with the formula **= (Ending Value - Beginning Value) / Beginning Value**, and then average these annual growth rates. You can do as follows:

**1**. Besides the original table, enter the below formula into the blank Cell C3 and, and then drag the Fill Handle to the Range C3:C11.

=(C4-C3)/C3

**2**. Select the Range D4:D12, click the **Percent Style** button on the **Home** tab, and then change its decimal places with clicking the **Increase Decimal** button or** Decrease Decimal **button . See screenshot:

**3**. Average all annual growth rate with entering below formula into Cell F4, and press the **Enter **key.

=AVERAGE(D4:D12)

Up to now, Average Annual Growth Rate has been calculated and shown in the Cell C12.

#### Demo: calculate average/compound annual growth rate in Excel

**Kutools for Excel**includes more than 300 handy tools for Excel, free to try without limitation in 30 days.

**Download and Free Trial Now**!

#### Related articles:

### The Best Office Productivity Tools

#### Kutools for Excel Solves Most of Your Problems, and Increases Your Productivity by
80%

**Reuse**: Quickly insert**complex formulas, charts**and anything that you have used before; Encrypt Cells with password; Create Mailing List and send emails...- Super Formula Bar (easily edit multiple lines of text and formula); Reading Layout (easily read and edit large numbers of cells); Paste to Filtered Range...
- Merge Cells/Rows/Columns without losing Data; Split Cells Content; Combine Duplicate Rows/Columns... Prevent Duplicate Cells; Compare Ranges...
- Select Duplicate or Unique Rows; Select Blank Rows (all cells are empty); Super Find and Fuzzy Find in Many Workbooks; Random Select...
- Exact Copy Multiple Cells without changing formula reference; Auto Create References to Multiple Sheets; Insert Bullets, Check Boxes and more...
- Extract Text, Add Text, Remove by Position, Remove Space; Create and Print Paging Subtotals; Convert Between Cells Content and Comments...
- Super Filter (save and apply filter schemes to other sheets); Advanced Sort by month/week/day, frequency and more; Special Filter by bold, italic...
- Combine Workbooks and WorkSheets; Merge Tables based on key columns; Split Data into Multiple Sheets; Batch Convert xls, xlsx and PDF...
- More than
300powerful features. Supports Office/Excel2007-2019 and 365. Supports all languages. Easy deploying in your enterprise or organization. Full features30-day free trial. 60-day money back guarantee.

#### Office Tab Brings Tabbed interface to Office, and Make Your Work Much Easier

**Enable tabbed editing and reading in Word, Excel, PowerPoint**, Publisher, Access, Visio and Project.- Open and create multiple documents in new tabs of the same window, rather than in new windows.
- Increases your productivity by
50%, and reduces hundreds of mouse clicks for you every day!