CAGR Calculator (Compound Annual Growth Rate)

What is CAGR?

CAGR (Compound Annual Growth Rate) is a financial metric used to measure the average annual growth rate of an investment, revenue, or any other metric over a specified period. It provides a smoothed annual growth rate, eliminating the volatility of periodic returns and offering a clear picture of long-term performance.

Formula for CAGR

  1. Input Fields: Users can select a currency, enter the starting value, ending value, and the number of years.
  2. CAGR Calculation: The formula used is:

Example Calculation

Starting Value: $10,000

Ending Value: $20,000

Calculation Period: 5 years

Result:

The CAGR is 14.87%, meaning the investment grew at an average annual rate of 14.87% over 5 years.

How to Use the Tool

Select Currency:

Choose your preferred currency from the dropdown menu.

Enter Values:

Input the Starting Value (e.g., the initial investment amount).

Input the Ending Value (e.g., the final value of the investment).

Specify the Calculation Period in years.

Calculate CAGR:

Click the "Calculate CAGR" button to compute the Compound Annual Growth Rate.

View Results:

The tool will display the CAGR as a percentage, along with the selected currency symbol, in an animated format.