Calculating Average Annual Growth

Problem:

Columns A & B show annual profits for a number of years.
We want to calculate the average rate at which profits grew each year.

Solution:

Use the AVERAGE function in the following Array formula:
{=AVERAGE((B3:B5-B2:B4)/B2:B4)}

 

For more information on CAGR click on the below link: https://www.exceltip.com/tips/how-to-calculate-the-compound-annual-growth-rate-cagr-in-microsoft-excel-2010-2013.html

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