How to Calculate CAGR in PowerApps

Want to calculate CAGR (Compound Annual Growth Rate) directly inside your PowerApps app? Whether you’re building a finance dashboard or analyzing growth trends, PowerApps makes it easy with just a simple formula.

What is CAGR?

CAGR shows the rate at which an investment grows annually over a specific time period. It’s commonly used in business, finance, and sales analytics.

Formula:

CAGR = (Ending Value / Beginning Value) ^ (1 / Number of Years) - 1

How to Calculate CAGR in PowerApps

Use PowerApps’ formula language to implement the CAGR calculation:

Set(
    CAGR,
   (Power((EndingValue / BeginningValue), 1 / Years) - 1)*100 
)

Breakdown:

• Power(): Raises a number to a power.
• EndingValue: Final amount (e.g., sales or revenue in last year).
• BeginningValue: Initial amount.
• Years: Total number of years between the two values.

You can also display the result as a percentage:

Text(CAGR, "[$-en-US]0.00%")

Example

Let’s say your sales grew from $10,000 to $18,000 over 3 years:

Set(CAGR, (Power((18000 / 10000), 1 / 3) - 1)*100)

Result: 21.58%

Tips

• Wrap formulas in error handling (e.g., IfError) to avoid crashes.
• Use TextInput fields for dynamic input and bind them to variables.
• Format output as percentage for better readability.

Conclusion

Calculating CAGR in PowerApps is quick and useful for business intelligence apps. With a few lines of formula code, you can visualize growth trends and create powerful insights.

Need help building financial apps with Power Platform? Contact Software Zone 365 for expert solutions!