**Method 1 – ****Calculate the Future Value When the CAGR Is Known in Excel Using a Basic Formula**

Using the following formula, we can easily calculate the Future Value for a certain investment period when the **CAGR **value is known.

**FV = PV * (CAGR + 1) ^{n
}**In this formula,

**FV**– the future value which is the final amount of an investment after the investment period ends.

**PV**– the starting or present value of the investment money.

**CAGR**– known as Compound Annual Growth Rate in percentage.

**n**– the number of years for which we’ll invest the money.

For the sample dataset:

**C4** – initial investment/present value **(PV)
**

**C5**– compound annual growth rate

**(CAGR)**

**C6**– no of investment periods in years

**(n)**

- In cell
**C8,**put the following formula:**=C4*(C5+1)^C6**

- Press Enter to get the result.

**Read More:** CAGR Formula in Excel

**Method 2 – ****Use the FV Function to Estimate the Future Value When the CAGR Is Known**

The syntax for the **FV** function is- **FV(rate, nper, pmt, [pv], [type])**

The function takes several arguments:

**rate** (required)- the annual growth rate of the investment, CAGR.

**nper** (required) – number of payment periods in years.

**pmt** (required) – payment amount per period which is blank in this calculation.

**pv** (optional) – present value or initial investment amount.

**type** (optional)- 0 for payment due at the end of the payment period and 1 for payment due at the start of the period.

- In cell C10, we configured the following formula-
**=FV(C5,C6,,-C4,0)**

**C4**– initial investment/present value**(PV)**

**C5**– compound annual growth rate**(CAGR)**

**C6**– no of investment periods in years**(n).**

**C7 –**payment per period which is**empty**in this calculation.

**C8**– payment is due at the end of the period i.e., 0.

- Here’s the output.

**Note**

- If we use the pv argument without the negative sign, it’ll calculate the future value as negative.

- By default, the result shows as a number with decimal places. You can remove decimal places by following the steps below:

- Go to the
**Home**Tab. - Navigate to the
**Number**panel. - Choose the
**Decrease Decimal.**

**Read More:** How to Calculate End Value from CAGR in Excel

**Download the Practice Workbook**

**Related Articles**

- Excel Formula to Calculate Average Annual Compound Growth Rate
- How to Calculate CAGR with Negative Number in Excel
- How to Calculate 3-Year CAGR with Formula in Excel
- How to Calculate 5 Year CAGR Using Excel Formula
- How to Create CAGR Graph in Excel

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