CAGR Calculator

Purpose

The CAGR Calculator helps you determine the compound annual growth rate of an investment over a specified period.

Usage

Enter the initial value, final value, and the number of years. The calculator will compute the CAGR.

Output

The CAGR Calculator provides:

• CAGR: Annual growth rate as a percentage
• Total Growth: Overall percentage increase
• Absolute Growth: Monetary increase over the period
• Annualized Return: CAGR compared to simple annual interest

Interpretation

Understanding the CAGR result:

• CAGR shows average annual growth rate
• Higher CAGR indicates better performance
• Useful for comparing investments with different durations
• Doesn't show year-to-year fluctuations

Use CAGR with other financial metrics for a complete investment picture.

Formula

The CAGR is calculated using the following formula:

Where 'n' is the number of years. The result is typically expressed as a percentage.