CAGR Calculator
Understanding CAGR
The CAGR calculator helps you determine the annual growth rate of an investment over a specified period, considering the initial and final values of the investment.
Key Concepts:
- Initial Value: The value of the investment at the beginning of the period.
- Final Value: The value of the investment at the end of the period.
- Investment Period: The total duration of the investment, usually expressed in years.
How it Works:
The calculator estimates the annual growth rate of your investment based on the initial and final values and the investment period.
Calculation Formula:
CAGR = (Final Value / Initial Value)^(1 / Investment Period) - 1
Where:
Initial Value
: The value of the investment at the beginning.Final Value
: The value of the investment at the end.Investment Period
: The total duration of the investment in years.