CAGR Calculator

CAGR?

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 Formula:

\(CAGR = \left( \frac{{\text{Ending Value}}}{{\text{Beginning Value}}} \right)^{\frac{1}{\text{Number of Years}}} - 1\)

Where:

• EV _ Investment's ending value
• SV _ Investment's starting value
• n _ Number of investment periods

Example:

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:

• Beginning Value (BV) = $10,000
• Ending Value (EV) = $15,000
• Number of Years (n) = 5

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%.

what's 10% CAGR go back?

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.

Is CAGR the same as common Annual growth rate?

The average annual growth price suggests the yearly increase of average specially variables without thinking about the compounding elements.

Can CAGR Be terrible?

sure, a poor compound annual boom fee signifies a lower in price through the years rather than gains.