Compound Annual Growth Rate Calculator

Compound Annual Growth Rate Calculator calculator can be used to determine the annualized rate of return for an investment over a specified period, considering compound interest.

Input Parameters

Calculation Results

Calculation Formula

CAGR = [(FV / IV)^(1/n) - 1] × 100%

Where:
CAGR = Compound Annual Growth Rate
FV = Final Value
IV = Initial Investment
n = Number of Years

Compound Annual Growth Rate Calculator Usage Guide

Learn how to use the Compound Annual Growth Rate Calculator and its working principles

How to Use This Calculator

  1. Enter your initial investment amount (the amount you started with)
  2. Enter your final value (the amount you ended up with)
  3. Enter the number of years you held the investment
  4. Select the compounding frequency (how often interest is compounded)
  5. Click the "Calculate" button to determine the CAGR

Understanding Compound Annual Growth Rate (CAGR)

CAGR represents the mean annual growth rate of an investment over a specified period of time, assuming the profits are reinvested at each compounding period. It's a useful measure for comparing the growth rates of different investments.

Example Usage

Suppose you invested $10,000 and after 5 years, your investment grew to $15,000. If interest was compounded annually, your CAGR would be approximately 9.14%. This means your investment grew at an average annual rate of 9.14%.

Important Notes

  • CAGR is a historical measure and doesn't guarantee future results
  • This calculator assumes all cash flows occur at the end of each period
  • The actual growth rate may vary if there are additional contributions or withdrawals