Compound Quarterly Growth Rate (CQGR) in Excel is rather easy to calculate. This can be very useful to forecast potential income or forecast personal returns. Before we begin, make sure you understand how to calculate Compound Annual Growth Rates (CAGR).
CQGR =(((Begin Value(Years+Growth Rate))/Begin Value)^(1/4))Begin Value
Compound Annual Growth Rate (CAGR) Example:
CAGR = (Ending Value/Beginning Value)^(1/# of Years)-1
I find learning by example to be the most helpful. Therefore, I have included the excel demonstration file. In this example, we start with an initial investment of $1,000 and an growth rate of 5%. I broke the spreadsheet into quarters for 3 individual years based on the initial value. Using the formula above, we can calculate the return based on quarterly calculation. We can check our outcome by using the CAGR calculation. To check your calculations online, there are numerous online calculators. I prefer the calculator on MD Financial Management.