The Excel GEOMEAN function returns the geometric mean for a set of numeric values. Geometric mean can be used to calculate average rate of return with variable rates.
Calculate geometric mean
=GEOMEAN (number1, [number2], ...)
number1 - First value or reference.
number2 - [optional] Second value or reference.
The Excel GEOMEAN function calculates the geometric mean. Geometric mean is the average rate of return of a set of values calculated using the products of the terms. The general formula for the geometric mean of n numbers is the nth root of their product. For example:
To calculate Compound Annual Growth Rate (CAGR) in Excel, the average rate of return for an investment over a period of time, you can use several approaches. In the example shown, the formula in H7 is:
The Excel HARMEAN function returns the harmonic mean for a set of numeric values. The harmonic mean is the reciprocal of the arithmetic mean of reciprocals. Harmonic mean can be used to calculate a mean that reduces the impact of outliers.