CAGR calculator

CAGR (Compound annual growth rate) is an important indicator to calculate the annualized rate of growth of your investment. In other words, it measures how much you have earned on your investments every year over a specified period of time.

In an investment journey, the rate of return is not consistent every year. Suppose a person invested $10000 for 10 years. At the end of the 10th year, his investment value was $18000. His overall return on his investment was 80%.
But at what rate his investment grew every year over these 10 years is calculated with the help of CAGR. In this case, his CAGR was only 6.05% i.e. his annual growth rate was only 6.05%.
Below is the formula to calculate CAGR:-

CAGR = (Final value/Initial value)^1/t - 1

Where Final value means the final value of the investment at the end of the investment period.
Initial value means the initial value of the investment at the beginning of the investment period.
t = Time period in years.

Given below is the CAGR calculator. This calculator will calculate the compound annual growth rate for you. Simply enter the final value of the investment, the initial value of the investment, and the time period, and click calculate button.

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