The CAGR function returns the compound annual growth rate of an investment.
CAGR is part of the set of financial functions that Sigma supports.
CAGR(n, bv, ev)
The CAGR function syntax has the following arguments:
- The number of periods of the investment
- The beginning value
- The end value
The general formula for the CAGR function is:
(ev / bv )^(1 / n) - 1.
CAGR(4, 3000, 48000)
An investment that grew from $3,000 to $48,000 in 4 periods has a return rate of 100% for each period.
CAGR(10, [Beginning Investment], [Ending Investment])
Calculate the annual rate of return of an investment over a period of 10 years, as a percentage: