CAGR Formula in Google Sheets: 2 Easy Methods To Calculate CAGR in Google Sheets

There is no direct CAGR formula in Google Sheets for calculating Compounding Annual Growth Rate. However, calculating CAGR in Google Sheets is very simple. There are two easy methods to do so:

In both the methods you have to provide 3 values in three cells and the CAGR formula in the fourth cell of Google Sheets.

Method 1: Directly Using the CAGR Formula in Google Sheets

Input three values (initial amount, final amount, and no. of years) in 3 different cells, and write the CAGR formula in a different cell.

Let’s understand this with an example.

For example, in this screenshot, I have set up the calculation this way:

Cell C4: Initial amount or starting value: 10,000
Cell C5: Final amount or ending value: 20,000
Cell C6: No. of years: 10

I have then put the formula for calculating CAGR in Google Sheets in cell C8

Cell C8: =(C5 / C4)^(1 / C6) – 1

Using the ‘=’ sign tells Google Sheets that the cell contains a formula and then Google Sheets references and uses the numerical values in cells C4, C5, and C6 and applies the CAGR formula to show the result. The result shown in this case is 0.07177…

To represent the answer in easy-to-understand percentage terms, I copied the value in cell C9, and changed the format of the cell to “%”. So, the answer is 7.18%

cagr calculation in google sheets, change decimal to percentage value

Use this Link To Calculate CAGR in Google Sheets

Method 2: Using POW To Represent CAGR Formula in Google Sheets

For the sake of simplicity, we will be using the same numerical values as used in the example above.

Input three values (initial amount, final amount, and no. of years) in 3 different cells, and write the CAGR formula (using the POW function) in a different cell.

In this screenshot, I have set up the calculation this way:

Cell C4: Initial amount or starting value: 10,000
Cell C5: Final amount or ending value: 20,000
Cell C6: No. of years: 10

I have then put the formula for calculating CAGR in Google Sheets in cell C8, using the POW() function this time.

Cell C8: = POW(C5 / C4 , 1 / C6) – 1

To represent the answer in easy-to-understand percentage terms, I copied the value in cell C9, and changed the format of the cell to “%”. So, the answer is 7.18%

Use this Link To Calculate CAGR in Google Sheets

Conclusion

Calculating CAGR in Google Sheets is fairly simple, no matter which method you choose. Maybe, in the future, there will be a direct CAGR function introduced in Google Sheets. But, even then the setup would remain pretty much the same as shown here in both methods.