CAGR Calculator (Compound Annual Growth Rate)
Calculate the accurate geometric annual growth rate of an investment over multiple years.
Parameters
About this Calculation
Calculate the accurate geometric annual growth rate of an investment over multiple years.
CAGR Calculator (Compound Annual Growth Rate) Formula
Compound Annual Growth Rate (CAGR) measures the geometric mean return that provides the constant annualized rate of return on an investment over a multi-year period.
Ending ValueFinal valuation of the investmentBeginning ValueInitial initial cost or starting valuenNumber of holding periods in years- 1Divide the final investment value by the initial starting value.
- 2Calculate the exponent: 1 divided by the number of years (1 / n).
- 3Raise the value ratio to the calculated exponent.
- 4Subtract 1 from the result and multiply by 100 to express as an annualized percentage.
Worked Example: Real-time Evaluation
Mathematical Execution: Using the active input parameters, the in-browser execution engine evaluates the mathematical formula with zero latency.
Frequently Asked Questions
Assumptions & Accuracy
- Assumes standard standard-state values
- Rounded to standard decimal precision
Accuracy Note: Accurate to standard floating point precision.
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