CAGR

Returns the Compound Annual Growth Rate, which represents the smoothed annualized return.

Examples

=CAGR()

When to Use

  • Long-term performance comparison
  • Annualized return calculation
  • Investment growth analysis

When NOT to Use

Scenario Use Instead
Period returns MonthlyReturns()
Cumulative wealth WealthIndex()

Common Issues & FAQ

Q: How is CAGR different from average return? A: CAGR accounts for compounding; average return doesn't.

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MarketXLS Excel Add-in Tutorial - How to Use CAGR and Other Financial Formulas
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