About Compound Annual Growth Rate (CAGR) Calculator
CAGR (Compound Annual Growth Rate) calculator is a tool used to estimate the average annual growth rate of an investment over a specified period of time. It represents the average rate of growth of an investment over a specified period and takes into account both the capital appreciation and reinvestment of earnings.
The CAGR calculator typically requires inputs such as the initial investment amount, the final value of the investment, and the length of time the investment was held. The calculator then uses this information to estimate the average annual growth rate of the investment over the specified period.
The CAGR calculation can be a useful tool for individuals to estimate the average rate of return on their investments and compare the performance of different investments over time. It provides a single, comprehensive measure of the average rate of return on an investment and helps individuals make informed decisions about their investments.
Compound Annual Growth Rate (CAGR) Calculation
Formula for Compound Annual Growth Rate (CAGR) Calculation:
CAGR = ((EV / BV)^1/n - 1) * 100
EV: Ending value,
BV: Beginning value,
N: Number of years