Get the average rate of return on your investments over a year with this calculator online reliable tool.
CAGR is the fast form of Compound Annual increase charge.
"it's miles a monetary metric used to evaluate the common annual growth of your investments throughout a targeted period, assuming that the funding has been compounding steadily at that fee yearly"
\(CAGR = \left( \frac{{\text{Ending Value}}}{{\text{Beginning Value}}} \right)^{\frac{1}{\text{Number of Years}}} - 1\)
Suppose you invested $10,000 in a mutual fund five years ago, and it has grown to $15,000 today. Let’s use our Average Growth Rate Calculator to determine the Compound Annual Growth Rate (CAGR) of your investment.
Solution:
Given Values:
Formula:
\(CAGR = \left( \frac{\text{EV}}{\text{BV}} \right)^{\frac{1}{n}} - 1\)
Inserting The Values:
\(CAGR = \left( \frac{15,000}{10,000} \right)^{\frac{1}{5}} - 1\)
\(CAGR = (1.5)^{0.2} - 1\)
\(CAGR \approx 1.1487 - 1\)
\(CAGR \approx 0.1487\)
The Compound Annual Growth Rate (CAGR) is approximately 14.87%.
| Company Type | Good CAGR Range |
| Large-cap | 5% - 12% |
| Small companies | 15% - 30% |
| Start-up companies | 100% - 500% |
10% compound annual growth rate go back way that you earn 10% hobby each yr and then you get 10% return on your overall amount.
The average annual growth price suggests the yearly increase of average specially variables without thinking about the compounding elements.
sure, a poor compound annual boom fee signifies a lower in price through the years rather than gains.
| Year | Investment Value | CAGR (%) |
|---|---|---|
| 0 | $10,000 | - |
| 1 | $11,000 | - |
| 2 | $12,100 | 10 |
| 3 | $13,310 | 10 |
| 4 | $14,641 | 10 |
| 5 | $16,105.10 | 10 |
| 6 | $17,715.61 | 10 |
| 7 | $19,487.17 | 10 |
| 8 | $21,435.89 | 10 |
| 9 | $23,579.48 | 10 |
| 10 | $25,937.42 | 10 |
