Rearranging the formula for Compound Annual Growth Rate
August 1, 2013 10:54 AM Subscribe
How do you rejig the formula for CAGR to get the starting value when you know the other variables?
So - the formula for CAGR is ((Last Year/First Year)^(1/Number of Years))-1
Great. So far so good.
But for my current exercise I actually have the CAGR, I have the last year value and the number of years. But I don't have the starting value and I'm distinctly ungifted at maths.
What's the formula to calculate the initial value - ideally as an excel formula?
So - the formula for CAGR is ((Last Year/First Year)^(1/Number of Years))-1
Great. So far so good.
But for my current exercise I actually have the CAGR, I have the last year value and the number of years. But I don't have the starting value and I'm distinctly ungifted at maths.
What's the formula to calculate the initial value - ideally as an excel formula?
Response by poster: You're a legend a gentleman. Thank you.
posted by MuffinMan at 11:03 AM on August 1, 2013
posted by MuffinMan at 11:03 AM on August 1, 2013
Just to clarify that, First Year = Last Year/[(1+cagr)^n]. The exponent is applied only to the 1+cagr in the denominator.
posted by notsnot at 1:55 PM on August 1, 2013
posted by notsnot at 1:55 PM on August 1, 2013
This thread is closed to new comments.
posted by JPD at 11:00 AM on August 1, 2013