CAGR Calculator

Calculate compound annual growth rate online

Starting value:
(Initial Investment Value)

Ending value:
(Ending Investment Value)

No. of periods:
(Months/Years)

CAGR
(Compound Annual Growth Rate)

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What is Compound Annual Growth Rate (CAGR)

The compound annual growth rate, or CAGR for short, is the average rate at which some value (investment) grows over a certain period of time assuming the value has been compounding over that time period.

Know more about CAGR

CAGR calculator formula :

The formula for CAGR is:

CAGR = ( EV / SV)1 / n - 1

where:

EV = Investment's ending value
SV = Investment's starting value
n = Number of investment periods (months, years, etc.)

How CAGR is calculated

We can use the formula above to calculate the CAGR.

Assume an investment’s starting value is $1,000 and it grows to $10,000 in 3 years. The CAGR calculation is as follows:

CAGR = (10000/1000)1 / 3 - 1

CAGR = 1.1544

Hence, CAGR percentage = CAGR x 100 = 1.1544 x 100 = 115.44 %

Calculation of CAGR with Excel

Where CAGR Calculator matters

The compound annual growth are applied at various places of personal finance. It is often used to calculate the average growth of single investment over a certain period. CAGR can be applied in comparing return on equity with bonds or savng accounts. Further, it can be used to compare the performance of two companies and forecasting their future growth based on their historical data.

Limitation of CAGR

CAGR doesn't accounts for volatility. It calculates only the average percentage return and so CAGR values should never taken as only tool for investment return assessment.

About CAGR Calculator

CAGR Calculator is free online tool to calculate compound annual growth rate for your investment over a time period. To get the CAGR value for your investment, enter the starting value or initial investment amount along with the expected ending value and the number of months or years for which you want to calulate the CAGR. Next, click on calculate button and let the online CAGR calculator calculate the value for you. It tells you, how much your intial investment has grown over the selected course of time along with bar chart for more clear picture of your annually or periodically growth.

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Disclaimer:

This website is provided "as is" without any representations or warranties, express or implied. The site provides CAGR (compound annual growth rate) value without any warranty for it's accuracy. All financial decisions should be made with consultation with your financial advisor. This website is not responsible for, and expressly disclaims all liability for, damages of any kind arising out of use, reference to, or reliance on any information contained within the site. By using this website you agree to those terms, if not then do not use this website.