The Excel RRI function returns an equivalent interest rate for the growth of an investment. You can use RRI to calculate Compound Annual Growth Rate (CAGR) in Excel.
Get equivalent interest rate for growth
Calculated interest rate
=RRI (nper, pv, fv)
nper - Number of periods.
pv - Present value of investment.
fv - Future value of investment.
The RRI function returns an equivalent interest rate for the growth of an investment. For example, to use RRI to calculate equivalent annual compound interest for a 1000 investment worth 1200 after five years you can use a formula like this:
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 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.
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