okay you're in Microsoft Excel and you want to calculate annualized return so my scenario I've invested $110,000 and over 5 years it gave me a rate of return of 44.7 3% so this is my final value now to calculate the annualized return you need to perform the following calculation so it would be equals the final amount divided by the start amount then we put that in Brackets so it's calculated first then we raise that to the power so that shift and six on your keyboard we raise that to the power of one divided by the number of years in which we've invested so it be one ided by the number of years now if you want to calculate the number of years between two dates I'll show you we have to do that in a minute then we need to put all of this in Brackets again and then put minus one at the end of the formula now if I press enter you'll get your annualized return figure now it may appear like this initially and all you need to do is format the cell with the percent style format so you can do that up here and you can change the number of decimal places so if you've got specific start date and end date I'll show you how to calculate the number of years between those dates what you do is you use a function called year Frack so there's two arguments you'll need to use there the start date comma and the end date and then if you close the bracket and press enter that will give you your number of years so you will use that figure in this part of the formula okay that's what I wanted to cover in this particular video hopefully that's useful if it is please give me a thumbs up and subscribe and I'll see you next [Music] video