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How To Calculate CAGR in Excel

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How To Calculate CAGR in Excel

Compound Annual Growth Rate, CAGR, is your rate of return for an investment over a specific period.

Calculating CAGR by hand is a rather involved process, so below we’ll go over how you can quickly calculate CAGR in Excel.

CAGR Excel Formula

The formula for calculating CAGR in Excel is:

=(End Value/Beginning Value) ^ (1/Number of Years) – 1

The equation uses three different values:

  • End value, which is the amount of money you’ll have after the period has passed.
  • Beginning value, which is the amount of money you began with.
  • Number of years, which is the total number of years that have passed.

Below we’ll go over an example of how to calculate CAGR for a five years time frame in Excel using the sample data set shown below:

sample data

1. Identify the numbers you’ll use in your equation. Using the sample data set above,

  • The end value is 2143 (in cell B6).
  • The beginning value is 1000 (in cell B2).
  • The number of years is 5 (in cell A6).

2. Input your values into the formula. 

Excel offers many shortcuts, so you can simply input the cell numbers that contain each of your values into the equation. Using the sample data set above, the equation would be

=(B6/B2) ^ (1/A6) – 1

This is what it looks like in my Excel sheet:

calculate cagr in excel step 2: input your cell numbers into the equation

Note that the equation changes color to correspond with the cells you’re using, so you can look back and check that your inputs are correct before running the equation.

cagr formula in excel using cell numbers

You can also enter actual values into the formula instead of cell numbers. The equation would then look like this:

=(2143/1000) ^ (1/5) – 1

3. Once you’ve entered your values, click enter and run the equation. Your result will appear in the cell containing the equation, as shown in the image below.

cagr equation calculation final result in excel

CAGR Formula in Excel as a Percentage

Your default result will be shown as a decimal. To view it as a percentage, right-click on the cell your result is in, select Format Cells and then Percentage in the dialogue box.

Your result will be converted to a percentage, as shown in the image below.

cagr forumla in excel expressed as a percentage

Now let’s go over a shortcut for calculating CAGR in Excel using the Rate function.

How To Calculate CAGR Using RATE Function

The RATE function helps you calculate the interest rate on an investment over a period of time.The formula for calculating CAGR is: 

=RATE(nper,, pv, fv)

  • nper is the total number of periods in the time frame you’re measuring for. Since you’re calculating annual growth rate, this would be 12.
  • pv is the present value of your investment (must always be represented as a negative)
  • fv is future value.

Note that the standard RATE equation includes more variables, but you only need the above three to calculate your CAGR.

Let’s run an equation using the sample table below where nperi is 12, pv is 100, and fv is 500.

calculate CAGR using RATE formula in excel

1. In your sheet, select the cell that you want to contain your CAGR. I selected cell B5.

2. Enter the RATE formula and input your numbers. Note that you always need to express your present value as a negative, or you’ll receive an error message.

This is what my formula looks like.

sample cagr equation in excel using rate formulaNote that you can also simply enter the cell numbers that your values are in. With my sample table the formula would look like this:

=RATE(A2,,-B2,C2)

3. Click enter and run your equation. Using the sample data, my CAGR is 14%.

Now you know how to quickly and easily calculate your CAGR in Excel, no hand calculations required.

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Why Even Crushing Content Failures Aren’t Mistakes

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Why Even Crushing Content Failures Aren’t Mistakes

Did you follow the Apple iPad Pro content debacle?

Here’s a quick recap. A recent online ad for the new iPad Pro showed a large hydraulic press slowly crushing various symbols of creativity. A metronome, a piano, a record player, a video game, paints, books, and other creative tools splinter and smash as the Sonny and Cher song All I Ever Need Is You plays.

The ad’s title? “Crush!”

The point of the commercial — I think — is to show that Apple managed to smush (that’s the technical term) all this heretofore analog creativity into its new, very thin iPad Pro.  

To say the ad received bad reviews is underselling the response. Judgment was swift and unrelenting. The creative world freaked out.

On X, actor Hugh Grant shared Tim Cook’s post featuring the ad and added this comment: “The destruction of the human experience. Courtesy of Silicon Valley.”

When fellow actor Justine Bateman shared the Tim Cook post, she simply wrote, “Truly, what is wrong with you?” Other critiques ranged from tone-challenged to wasteful to many worse things.

Actor Justine Bateman shared Tim Cook’s post on X, which featured the ad, and added this comment: "Truly, what is wrong with you?".

A couple of days later, Apple apologized and canceled plans to air the ad on television.

How not-so-great content ideas come to life

The level of anger surprises me. Look, the ad does show the eyeballs on an emoji-faced squishy ball popping under the plates’ pressure, but still. Calling the ad “actually psychotic” might be a skosh over the top.

Yes, the ad missed the mark. And the company’s subsequent decision to apologize makes sense.

But anyone who’s participated in creating a content misfire knows this truth: Mistakes look much more obvious in hindsight.

On paper, I bet this concept sounded great. The brainstorming meeting probably started with something like this: “We want to show how the iPad Pro metaphorically contains this huge mass of creative tools in a thin and cool package.”

Maybe someone suggested representing that exact thing with CGI (maybe a colorful tornado rising from the screen). Then someone else suggested showing the actual physical objects getting condensed would be more powerful.

Here’s my imagined version of the conversation that might have happened after someone pointed out the popular internet meme of things getting crushed in a hydraulic press.

“People love that!”

“If we add buckets of paint, it will be super colorful and cool.”

“It’ll be a cooler version of that LG ad that ran in 2008.”

“Exactly!”

“It’ll be just like that ad where a bus driver kidnaps and subsequently crushes all the cute little Pokémon characters in a bus!” (Believe it or not, that was actually a thing.)

The resulting commercial suffers from the perfect creative storm: A not-great (copycat) idea at the absolutely wrong time.

None of us know what constraints Apple’s creative team worked under. How much time did they have to come up with a concept? Did they have time to test it with audiences? Maybe crushing physical objects fit into the budget better than CGI. All these factors affect the creative process and options (even at a giant company like Apple).

That’s not an excuse — it’s just reality.

Content failure or content mistake?

Many ad campaigns provoke a “What the hell were they thinking?” response (think Pepsi’s Kendall Jenner ad or those cringy brand tributes that follow celebrity deaths).

Does that mean they’re failures? Or are they mistakes? And what’s the difference?

As I wrote after Peloton’s holiday ad debacle (remember that?), people learn to fear mistakes early on. Most of us hear cautionary messages almost from day one.

Some are necessary and helpful (“Don’t stick a knife in a live toaster” or “Look both ways before you cross the street.”) Some aren’t (“Make that essay perfect” or “Don’t miss that goal.”)

As a result, many people grow up afraid to take risks — and that hampers creativity. The problem arises from conflating failure and mistakes. It helps to know the difference.

I moved to Los Angeles in 1987 to become a rock ‘n’ roll musician. I failed. But it wasn’t a mistake. I wasn’t wrong to try. My attempt just didn’t work.

Labeling a failed attempt a “mistake” feeds the fears that keep people from attempting anything creative.

The conflation of failure and mistakes happens all too often in creative marketing. Sure, people create content pieces (and let’s not forget that there are always people behind those ideas) that genuinely count as mistakes.

They also create content that simply fails.

Don’t let extreme reactions make you fear failures

Here’s the thing about failed content. You can do all the work to research your audience and take the time to develop and polish your ideas — and the content still might fail. The story, the platform, or the format might not resonate, or the audience simply might not care for it. That doesn’t mean it’s a mistake.

Was the Apple ad a mistake? Maybe, but I don’t think so.

Was it a failure? The vitriolic response indicates yes.

Still, the commercial generated an impressive amount of awareness (53 million views of the Tim Cook post on X, per Variety.) And, despite the apology, the company hasn’t taken the ad down from its YouTube page where it’s earned more than 1 million views.

The fictional Captain Jean Luc Picard once said, “It is possible to commit no mistakes and still lose. That is not weakness. That is life.” The Apple ad turns that statement on its head — Apple made many mistakes and still won a tremendous amount of attention.

I’m not suggesting that people shouldn’t criticize creative work. Constructive critiques help us learn from our own and others’ failures. You can even have a good laugh about content fails.

Just acknowledge, as the Roman philosopher Cicero once wrote, “Not every mistake is a foolish one.” 

Creative teams take risks. They try things outside their comfort zone. Sometimes they fail (sometimes spectacularly).

But don’t let others’ expressions of anger over failures inhibit your willingness to try creative things.

Wouldn’t you love to get the whole world talking about the content you create? To get there, you have to risk that level of failure.

And taking that risk isn’t a mistake.

It’s your story. Tell it well.

Subscribe to workday or weekly CMI emails to get Rose-Colored Glasses in your inbox each week. 

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Cover image by Joseph Kalinowski/Content Marketing Institute 



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The Future of Content Success Is Social

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The Future of Content Success Is Social

Here’s a challenge: search “SEO RFP” on Google. Click on the results, and tell me how similar they are.

We did the same thing every other SEO does: We asked, “What words are thematically relevant?” Which themes have my competitors missed?” How can I put them in?” AND “How can I do everything just slightly better than they can?”

Then they do the same, and it becomes a cycle of beating mediocre content with slightly less mediocre content.

When I looked at our high-ranking content, I felt uncomfortable. Yes, it ranked, but it wasn’t overly helpful compared to everything else that ranked.

Ranking isn’t the job to be done; it is just a proxy.

Why would a high-ranking keyword make me feel uncomfortable? Isn’t that the whole freaking job to be done? Not for me. The job to be done is to help educate people, and ranking is a byproduct of doing that well.

I looked at our own content, and I put myself in the seat of a searcher, not an SEO; I looked at the top four rankings and decided that our content felt easy, almost ChatGPT-ish. It was predictable, it was repeatable, and it lacked hot takes and spicy punches.

So, I removed 80% of the content and replaced it with the 38 questions I would ask if I was hiring an SEO. I’m a 25-year SME, and I know what I would be looking for in these turbulent times. I wanted to write the questions that didn’t exist on anything ranking in the top ten. This was a risk, why? Because, semantically, I was going against what Google was likely expecting to see on this topic. This is when Mike King told me about information gain. Google will give you a boost in ranking signals if you bring it new info. Maybe breaking out of the sea of sameness + some social signals could be a key factor in improving rankings on top of doing the traditional SEO work.

What’s worth more?

Ten visits to my SEO RFP post from people to my content via a private procurement WhatsApp group or LinkedIn group?

One hundred people to the same content from search?

I had to make a call, and I was willing to lose rankings (that were getting low traffic but highly valued traffic) to write something that when people read it, they thought enough about it to share it in emails, groups, etc.

SME as the unlock to standout content?

I literally just asked myself, “Wil, what would you ask yourself if you were hiring an SEO company? Then I riffed for 6—8 hours and had tons of chats with ChatGPT. I was asking ChatGPT to get me thinking differently. Things like, “what would create the most value?” I never constrained myself to “what is the search volume,” I started with the riffs.

If I was going to lose my rankings, I had to socially promote it so people knew it existed. That was an unlock, too, if you go this route. It’s work, you are now going to rely on spikes from social, so having a reason to update it and put it back in social is very important.

Most of my “followers” aren’t looking for SEO services as they are digital marketers themselves. So I didn’t expect this post to take off HUGLEY, but given the content, I was shocked at how well it did and how much engagement it got from real actual people.

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7 Things Creators Should Know About Marketing Their Book

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7 Things Creators Should Know About Marketing Their Book

Writing a book is a gargantuan task, and reaching the finish line is a feat equal to summiting a mountain.

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