CAGR Calculator (Compound Annual Growth Rate)

# CAGR Calculator

Initial Value:
\$
Final Value:
\$
Period:

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• ## How is CAGR Calculated?

### What is CAGR Expansion?

CAGR stands for Compound Annual Growth Rate.

#### What is CAGR?

CAGR is a financial indicator showing the annual growth rate of investments. To show a little more, it shows the change from the value of an investment you made years ago to its present value. For example, let's say you bought a firm's share 5 years ago and think that you have invested \$ 1000 in total. Now let's assume that the shares are at \$ 2250. In this case, CAGR, that is, Annual Compound Growth Rate will be 17.61%. The important point here is that there can be no growth at this rate every year. There may even be a decline in some periods, but when we evaluate the difference between the start and end point, we get an average rate. And this rate is called Compound Annual Growth Rate (CAGR).

#### How to Calculate Annual Compound Growth Rate (CAGR)?

As we have just mentioned, CAGR compares the start and end values of the investment and achieves a rate. While calculating CAGR, you can use our calculation tool or use the following formula:
CAGR = (End Value - Initial Value) (1 / n) - 1.
You have CAGR or annual compound growth If you want to calculate the rate, you can calculate the start, end value and period of your investment and enter it by pressing the Calculate button.