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 AVERAGE function returns the average of values supplied as multiple arguments. AVERAGE can handle up to 255 individual arguments, which can include numbers, cell references, ranges, arrays, and constants.
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.
Formulas are the key to getting things done in Excel. In this accelerated training, you'll learn how to use formulas to manipulate text, work with dates and times, lookup values with VLOOKUP and INDEX & MATCH, count and sum with criteria, dynamically rank values, and create dynamic ranges. You'll also learn how to troubleshoot, trace errors, and fix problems. Instant access. See details here.