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To calculate Compound Annual Growth Rate (CAGR) in Excel, the average rate of return for an investment over a period of time, you can use several approaches. In the example shown, the formula in H7 is: = (C11 / C6) ^ (1 / B11)-1. CAGR with a manual formula. This article describes the formula syntax and usage of the IRR function in Microsoft Excel. Description. Returns the internal rate of return for a series of cash flows represented by the numbers in values. These cash flows do not have to be even, as they would be for an annuity. There are several different ways to calculate CAGR in Excel. In this tutorial you’ll learn the quickest way to calculate CAGR in Microsoft Excel. Compound annual growth rate or CAGR, as it is more lovingly known as, is simply the rate at which something grows over a period of years taking into account the effect of compouding.