[et_pb_section fb_built=”1″ admin_label=”section” _builder_version=”4.16″ global_colors_info=”{}” theme_builder_area=”post_content” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on” da_disable_devices=”off|off|off”][et_pb_row admin_label=”row” _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||” theme_builder_area=”post_content”][et_pb_text _builder_version=”4.22.2″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n
Google Sheets is the go-to solution to perform financial calculations. Apart from the fact that it\u2019s free, this cloud-based spreadsheet app makes it easy to store, calculate, and analyze any type of data.<\/p>\n
Whether you\u2019re looking to manage your personal finances or business operations, Google Sheets includes a wide range of financial functions that help you calculate key information such as compound interest<\/a> or the compound annual growth rate, aka CAGR. This is the best formula to evaluate how different investments have performed over a period of time.<\/p>\n In this article, you\u2019ll learn what CAGR is, how to write the formula syntax, how to calculate CAGR, as well as how to use two alternative formulas, POW and RRI, to calculate CAGR in Google Sheets.<\/p>\n [\/et_pb_text][et_pb_text module_id=”what-is-the-cagr-formula” _builder_version=”4.22.2″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n CAGR stands for compound annual growth rate and is a concept used to assess the performance of various investments over a specific period. For example, as an investor, the CAGR formula can help you compare stocks within a peer group or against a market index.<\/p>\n CAGR is not a built-in formula in Google Sheets but as you\u2019ll see, the syntax is not complex at all:<\/p>\n CAGR = (EV \/ BV) ^ (1\/n) \u2013 1<\/p>\n To fully understand the formula, these are the steps taken to calculate CAGR:<\/p>\n 1.<\/strong> EV \/ BV is the value of an investment at the end of the period divided by the value at the beginning of the period.<\/p>\n 2.<\/strong> The result obtained from EV \/ BV is raised to an exponent of one divided by n, the number of years.<\/p>\n 3.<\/strong> Subtract 1 from the result obtained from (EV \/ BV) ^ (1\/n).<\/p>\n 4.<\/strong> To obtain a percentage, multiply the result by 100<\/p>\n [\/et_pb_text][et_pb_text module_id=”how-to-calculate-cagr-in-google-sheets” _builder_version=”4.22.2″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n Now that you know what CAGR is and what it\u2019s used for, you\u2019ll learn three ways to calculate it in your Google Sheets. Alternatively, you can also use an online CAGR calculator<\/a>. This is how you can calculate CAGR manually in your Google Sheets.<\/p>\n To calculate CAGR, you need to make sure that your spreadsheet contains the following values: ending value, beginning value, and the number of periods\/years.<\/p>\n 1.<\/strong> Open the Google Sheets where you\u2019d like to calculate the CAGR. Check that you have the required values.<\/p>\n [\/et_pb_text][et_pb_image src=”https:\/\/static.sheetgo.com\/wp-content\/uploads\/2026\/11\/cagr-formula-google-sheets-cagr-main-values.webp” alt=”CAGR formula in Google Sheets \u2014 beginning value $5,700, ending value $11,400 and 5 periods in column B” title_text=”Beginning value $5,700, ending value $11,400 and 5 periods in column B” align=”center” _builder_version=”4.22.2″ _module_preset=”default” width=”100%” global_colors_info=”{}” theme_builder_area=”post_content”][\/et_pb_image][et_pb_text _builder_version=”4.22.2″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n 2.<\/strong> Type in an equal sign, followed by an opening parenthesis, to trigger the formula function in Google Sheets. Then, select the cell containing the ending value, add the division sign \u201c\/\u201d, select the beginning value, and close the parenthesis.<\/p>\n [\/et_pb_text][et_pb_image src=”https:\/\/static.sheetgo.com\/wp-content\/uploads\/2026\/11\/cagr-formula-google-sheets-ev-bv.webp” alt=”Calculate CAGR in Google Sheets \u2014 =(B2\/B1) typed in the CAGR cell to divide the ending value by the beginning value” title_text=”=(B2\/B1) typed in the CAGR cell to divide the ending value by the beginning value” align=”center” _builder_version=”4.22.2″ _module_preset=”default” width=”100%” global_colors_info=”{}” theme_builder_area=”post_content”][\/et_pb_image][et_pb_text _builder_version=”4.22.2″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n 3.<\/strong> Add the exponent sign \u201c^\u201d followed by \u201c1\u2033, the division sign \u201c\/\u201d, and select the cell corresponding to the number of periods. Once again, this should be placed between parentheses.<\/p>\n [\/et_pb_text][et_pb_image src=”https:\/\/static.sheetgo.com\/wp-content\/uploads\/2026\/11\/cagr-formula-google-sheets-1-n.webp” alt=”CAGR formula Google Sheets \u2014 =(B2\/B1)^(1\/B3) raising the ratio to 1 over the number of periods” title_text=”=(B2\/B1)^(1\/B3) raising the ratio to 1 over the number of periods” align=”center” _builder_version=”4.22.2″ _module_preset=”default” width=”100%” global_colors_info=”{}” theme_builder_area=”post_content”][\/et_pb_image][et_pb_text _builder_version=”4.22.2″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n 4.<\/strong> Add a minus sign and \u201c1\u2033 to subtract one from the result.<\/p>\n [\/et_pb_text][et_pb_image src=”https:\/\/static.sheetgo.com\/wp-content\/uploads\/2026\/11\/cagr-formula-google-sheets-subtract-one.webp” alt=”CAGR formula Google Sheets \u2014 =(B2\/B1)^(1\/B3)-1 in the CAGR cell” title_text=”=(B2\/B1)^(1\/B3)-1 in the CAGR cell” align=”center” _builder_version=”4.22.2″ _module_preset=”default” width=”100%” global_colors_info=”{}” theme_builder_area=”post_content”][\/et_pb_image][et_pb_text _builder_version=”4.22.2″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n 5.<\/strong> To format the result as a percentage, add the multiplication sign \u201c*\u201d and then \u201c100\u2033. To obtain the result, press \u201cEnter\u201d.<\/p>\n [\/et_pb_text][et_pb_image src=”https:\/\/static.sheetgo.com\/wp-content\/uploads\/2026\/11\/cagr-formula-google-sheets-format-as-percentage.webp” alt=”CAGR formula Google Sheets \u2014 =((B2\/B1)^(1\/B3)-1)*100 to show the result as a percentage” title_text=”=((B2\/B1)^(1\/B3)-1)*100 to show the result as a percentage” align=”center” _builder_version=”4.22.2″ _module_preset=”default” width=”100%” global_colors_info=”{}” theme_builder_area=”post_content”][\/et_pb_image][et_pb_text _builder_version=”4.22.2″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n 6.<\/strong> You should now see the result of the CAGR as a percentage.<\/p>\n [\/et_pb_text][et_pb_image src=”https:\/\/static.sheetgo.com\/wp-content\/uploads\/2026\/11\/cagr-formula-google-sheets-cagr-result.webp” alt=”Calculate CAGR in Google Sheets \u2014 CAGR result of 14.8698355 in cell B4″ title_text=”CAGR result of 14.8698355 in cell B4″ align=”center” _builder_version=”4.22.2″ _module_preset=”default” width=”100%” global_colors_info=”{}” theme_builder_area=”post_content”][\/et_pb_image][et_pb_text _builder_version=”4.22.2″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n You can calculate the CAGR in Google Sheets using the POW function. Unlike CAGR, the POW function is built into Google Sheets. Here’s the syntax for the POW function.<\/p>\n =POW (base, exponent)<\/p>\n 1.<\/strong> Type in an equal sign and \u201cPOW\u201d to trigger the POW formula in Google Sheets.<\/p>\n [\/et_pb_text][et_pb_image src=”https:\/\/static.sheetgo.com\/wp-content\/uploads\/2026\/11\/cagr-formula-google-sheets-enter-pow-function.webp” alt=”CAGR with POW in Google Sheets \u2014 =POW typed in cell B5 with the POW suggestion open” title_text=”=POW typed in cell B5 with the POW suggestion open” align=”center” _builder_version=”4.22.2″ _module_preset=”default” width=”100%” global_colors_info=”{}” theme_builder_area=”post_content”][\/et_pb_image][et_pb_text _builder_version=”4.22.2″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n 2.<\/strong> Open parenthesis and add the ending value, the division sign, and the beginning value. Then, separate this division by a comma \u201c,\u201d and add the second part of the CAGR formula, \u201c1\u2033, the division sign, select the number of periods value, and close parenthesis before subtracting by one, \u201c-1\u2033.<\/p>\n [\/et_pb_text][et_pb_image src=”https:\/\/static.sheetgo.com\/wp-content\/uploads\/2026\/11\/cagr-formula-google-sheets-pow.webp” alt=”CAGR with POW in Google Sheets \u2014 =POW(B2\/B1,1\/B3)-1 in the POW row” title_text=”=POW(B2\/B1,1\/B3)-1 in the POW row” align=”center” _builder_version=”4.22.2″ _module_preset=”default” width=”100%” global_colors_info=”{}” theme_builder_area=”post_content”][\/et_pb_image][et_pb_text _builder_version=”4.22.2″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n 3.<\/strong> To obtain the same result as before, as a percentage, add extra parentheses and include \u201c*100\u2033 at the very end of the formula, as shown below.<\/p>\n [\/et_pb_text][et_pb_image src=”https:\/\/static.sheetgo.com\/wp-content\/uploads\/2026\/11\/cagr-formula-google-sheets-format-as-percentage-2.webp” alt=”CAGR with POW in Google Sheets \u2014 =(POW(B2\/B1,1\/B3)-1)*100 to show the result as a percentage” title_text=”=(POW(B2\/B1,1\/B3)-1)*100 to show the result as a percentage” align=”center” _builder_version=”4.22.2″ _module_preset=”default” width=”100%” global_colors_info=”{}” theme_builder_area=”post_content”][\/et_pb_image][et_pb_text _builder_version=”4.22.2″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n 4.<\/strong> Press \u201cEnter\u201d to obtain the same result using the POW function.<\/p>\n [\/et_pb_text][et_pb_image src=”https:\/\/static.sheetgo.com\/wp-content\/uploads\/2026\/11\/cagr-formula-google-sheets-pow-and-cagr-same-results.webp” alt=”CAGR with POW in Google Sheets \u2014 POW and CAGR rows both returning 14.8698355″ title_text=”POW and CAGR rows both returning 14.8698355″ align=”center” _builder_version=”4.22.2″ _module_preset=”default” width=”100%” global_colors_info=”{}” theme_builder_area=”post_content”][\/et_pb_image][et_pb_text _builder_version=”4.22.2″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n The RRI function can also be used in Google Sheets to calculate the CAGR. The RRI formula in Google Sheets calculates the interest rate you need for an investment to reach a value within a specified number of periods. Let\u2019s see what the RRI formula looks like.<\/p>\n The syntax of the RRI function is:<\/p>\n =RRI(number_of_periods, present_value, future_value)<\/p>\n 1.<\/strong> Type in an equal sign and \u201cRRI\u201d to trigger the RRI formula in Google Sheets.<\/p>\n [\/et_pb_text][et_pb_image src=”https:\/\/static.sheetgo.com\/wp-content\/uploads\/2026\/11\/cagr-formula-google-sheets-enter-rri-formula.webp” alt=”CAGR with RRI in Google Sheets \u2014 =RRI typed in cell B6 with the RRI suggestion open” title_text=”=RRI typed in cell B6 with the RRI suggestion open” align=”center” _builder_version=”4.22.2″ _module_preset=”default” width=”100%” global_colors_info=”{}” theme_builder_area=”post_content”][\/et_pb_image][et_pb_text _builder_version=”4.22.2″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n 2.<\/strong> Open parenthesis, and select the cell containing the number of periods to include it in the RRI formula. Follow with a comma.<\/p>\n [\/et_pb_text][et_pb_image src=”https:\/\/static.sheetgo.com\/wp-content\/uploads\/2026\/11\/cagr-formula-google-sheets-include-number-of-periods.webp” alt=”CAGR with RRI in Google Sheets \u2014 =RRI(B3, with the number of periods cell selected” title_text=”=RRI(B3, with the number of periods cell selected” align=”center” _builder_version=”4.22.2″ _module_preset=”default” width=”100%” global_colors_info=”{}” theme_builder_area=”post_content”][\/et_pb_image][et_pb_text _builder_version=”4.22.2″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n 3.<\/strong> Select the cell corresponding to the beginning value to include in the formula.<\/p>\n [\/et_pb_text][et_pb_image src=”https:\/\/static.sheetgo.com\/wp-content\/uploads\/2026\/11\/cagr-formula-google-sheets-select-beginning-value.webp” alt=”CAGR with RRI in Google Sheets \u2014 =RRI(B3,B1 with the beginning value cell selected” title_text=”=RRI(B3,B1 with the beginning value cell selected” align=”center” _builder_version=”4.22.2″ _module_preset=”default” width=”100%” global_colors_info=”{}” theme_builder_area=”post_content”][\/et_pb_image][et_pb_text _builder_version=”4.22.2″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n 4.<\/strong> Add a comma and then select the cell corresponding to the ending value. Close parenthesis.<\/p>\n [\/et_pb_text][et_pb_image src=”https:\/\/static.sheetgo.com\/wp-content\/uploads\/2026\/11\/cagr-formula-google-sheets-select-ending-value.webp” alt=”CAGR with RRI in Google Sheets \u2014 =RRI(B3,B1,B2) with the ending value cell selected” title_text=”=RRI(B3,B1,B2) with the ending value cell selected” align=”center” _builder_version=”4.22.2″ _module_preset=”default” width=”100%” global_colors_info=”{}” theme_builder_area=”post_content”][\/et_pb_image][et_pb_text _builder_version=”4.22.2″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n 5.<\/strong> To format as a percentage, multiply by 100 by adding \u201c*100\u2033 as shown below.<\/p>\n [\/et_pb_text][et_pb_image src=”https:\/\/static.sheetgo.com\/wp-content\/uploads\/2026\/11\/cagr-formula-google-sheets-format-as-percentage-3.webp” alt=”CAGR with RRI in Google Sheets \u2014 CAGR, POW and RRI rows all returning 14.8698355″ title_text=”CAGR, POW and RRI rows all returning 14.8698355″ align=”center” _builder_version=”4.22.2″ _module_preset=”default” width=”100%” global_colors_info=”{}” theme_builder_area=”post_content”][\/et_pb_image][et_pb_text module_id=”conclusion” _builder_version=”4.22.2″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n As you can see, Google Sheets has become a truly versatile spreadsheet app for many business people since it allows users to perform basic to advanced financial calculations. Not only this, but it also offers a wide variety of formulas to import financial data, such as the GOOGLEFINANCE function<\/a> or the YahooF function via Google Apps Script<\/a>.<\/p>\n You should know now what the CAGR is, how it\u2019s expressed, and the two alternative ways to calculate it in Google Sheets using the POW function and RRI function. Learning how to calculate the CAGR manually is important so you can fully understand the data needed. However, the RRI function is the most suitable if you prefer a quicker method.<\/p>\n If you want to learn about more financial formulas in Google Sheets and Excel, check out any of the articles below:<\/p>\nWhat is the CAGR formula?<\/h2>\n
CAGR standard formula syntax<\/h3>\n
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How to calculate CAGR in Google Sheets?<\/h2>\n
How to calculate CAGR manually?<\/h3>\n
How to calculate CAGR with the POW function?<\/h3>\n
POW function syntax<\/h4>\n
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How to calculate CAGR with the RRI function<\/h3>\n
RRI formula syntax<\/h4>\n
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Conclusion<\/h2>\n