CAGR Calculator
Calculate the constant rate of return over a time period.
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Understanding This Calculator
CAGR Formula
Compound Annual Growth Rate (CAGR) measures the mean annual growth rate of an investment over a specified time period longer than one year.
CAGR = (End Value / Start Value)^(1/n) - 1
- End Value: Value at the end of the period
- Start Value: Value at the beginning
- n: Number of years
Example 1
Investment grows from $1,000 to $2,000 in 5 years.
- Formula: (2000 / 1000)^(1/5) - 1
- (2)^(0.2) - 1 = 1.1487 - 1 = 0.1487
- CAGR: 14.87%
Example 2
Revenue grows from $500,000 to $1,000,000 in 3 years.
- Formula: (1000000 / 500000)^(1/3) - 1
- (2)^(0.333) - 1 = 1.2599 - 1
- CAGR: 25.99%
How to Use
- Enter starting value, ending value, and years.
Frequently Asked Questions
Can I rely on these financial figures?
This tool provides estimates based on your inputs. For improving financial decisions, please consult a professional advisor.
Is this calculator free to use?
Yes, this calculator is 100% free and does not require any registration or subscription.
Is it mobile-friendly?
Absolutely! Our tool is optimized for all devices, including mobile phones, tablets, and desktop computers.