# How to Calculate CAGR in Google Sheets (Step-by-Step)

The acronym CAGR stands for compound annual growth rate, which is the average annualized revenue growth rate during a certain time period.

The formula to calculate CAGR is as follows:

CAGR = (future value / present value)1/periods – 1

The following examples show two equivalent ways to calculate CAGR in Google Sheets.

### Method 1: Calculate CAGR Manually

We can use the following formula to calculate CAGR manually in Google Sheets:

```=(ENDING_VALUE/STARTING_VALUE)^(1/PERIODS)-1
```

The following screenshot shows how to use this formula to calculate CAGR for an investment that started at \$1,000 and ended at \$5,000 after 9 investment periods: The CAGR is 19.58%. This represents the compound annual growth rate of the investment during these 9 investment periods.

We can confirm this answer is correct by calculating the growth of an initial \$1,000 investment if it grew consistently at 19.58% each year for 9 years: ### Method 2: Calculate CAGR Using RRI Function

Another way to calculate CAGR in Google Sheets is by using the RRI function, which uses the following syntax:

RRI(number of periods, starting value, ending value)

The following screenshot shows how to use this function in practice: The CAGR is 19.58%.

This matches the value that we calculated manually using the previous method.