Compound Annual Growth Rate (CAGR) Calculator
The Compound Annual Growth Rate (CAGR) is the yearly value of an investment over a certain period of time, useful for calculating potential growths and losses of various ventures.
The CAGR calculator is a practical method for finding the annual growth rate of an investment whose price or worth has varied at least somewhat significantly during the venture time frame. CAGR lets you generate an accurate Return on Investment (ROI) rate for whichever investment period you desire. It is also useful for determining possible consequences of an investment, as well as their respective magnitudes.
The Compound Annual Growth Rate Formula
Compound Annual Growth Rate (CAGR) = ( FV / IV)1 / n - 1
FV = Final Value, IV = Initial Value, n = Number of Years
Example: Initial Value (IV) = 1000, Final Value (FV) = 5000, Number of Years (n) = 10 (Years)
Compound Annual Growth Rate (CAGR) = (5,000 / 1,000)1/10 - 1 = .17462 = 17.46%