Welcome to a 5-part video series on the “Must-have Excel Functions for Financial Modelling”. If your financial model is showing some returns, growth rates or any outputs that are fluctuating quite a bit over time, it’s useful to see what the compound annual growth rate is for this. In part 4 of this series, we take a look at a couple of different ways to calculate the compound annual growth rate (CAGR) using simple Excel functions.
Watch as Microsoft MVP, Danielle Stein Fairhurst demonstrates how to calculate CAGR long-hand in Excel, and then use the RATE and the RRI functions.