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Financial function

RRI

Returns the equivalent compound growth rate between two values, a CAGR.

OccasionalDifficulty 1350 · AdvancedUsage rank #212 of 520
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When to use it

The equivalent periodic rate for an investment growing from one value to another over a number of periods: the CAGR.

The shape of it

Syntax
=RRI(nper, pv, fv)
Example
=RRI(5,B1,B6)

Worked examples

  • CAGR of a doubling

    =RRI(10,1000,2000) 7.18%

    Doubling in ten years.

  • Revenue CAGR

    =RRI(5,100,150) 8.45%

    Revenue from 100 to 150 over five years.

  • Monthly rate

    =RRI(96,10000,11000) 0.099%

    A monthly rate over 96 months.

Worth knowing

  • CAGR without the ^(1/n) dance.
  • Same as (fv/pv)^(1/nper)-1.
  • Use for growth rates across any span; GEOMEAN for a series of factors.
  • Introduced in Excel 2013.

Where it goes wrong

  • #NUM! for non-positive values or nper.
  • Ignores the path taken; only the endpoints matter.

Related

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