Excel RRI Function
Summary
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.
Purpose
Get equivalent interest rate for growth
Return value
Calculated interest rate
Syntax
=RRI (nper, pv, fv)
Arguments
- nper - Number of periods.
- pv - Present value of investment.
- fv - Future value of investment.
Usage notes
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:
=RRI(5,1000,1200) // returns 0.037137289
In the example shown, the formula in G6 is:
=RRI(B11,C6,C11)
RRI formula examples
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:
=(C11/C6)^(1/...
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