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Results
Compound Annual Growth Rate (CAGR)
Total Growth Rate
About CAGR Calculator
Calculation Method
Compound Annual Growth Rate (CAGR) is a representational figure rather than a true return rate. It describes the rate at which an investment would have grown if it had grown the same rate every year and the profits were reinvested at the end of each year.
Formula
The formula for calculating CAGR is:
CAGR = (Final Value / Initial Value) ^ (1 / n) - 1
Key Terms
- Initial Value
- The beginning value of the investment.
- Final Value
- The value of the investment at the end of the period.
- Period (n)
- The time duration of the investment in years.
How to Use CAGR Calculator
- Enter the Initial Value (starting amount)
- Enter the Final Value (ending amount)
- Enter the Period in years
- Click 'Calculate CAGR' to see the result
Tips
- CAGR assumes earnings are reinvested
- Period must be positive and Initial Value cannot be zero
- Results are for reference; actual returns may vary
