CAGR Calculator

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.