What Is the CAGR Calculator (Compound Annual Growth Rate)?
The geometric progression ratio that measures constant annualized return of an investment over time.
How Does the CAGR Calculator (Compound Annual Growth Rate) Work?
Divides ending capital by beginning capital, raises to the reciprocal of years, and subtracts 1.
CAGR Calculator (Compound Annual Growth Rate) Formula & Variables
The core mathematical equation utilized by this calculator is expressed as:
CAGR = (Ending Value / Beginning Value)^(1 / Years) − 1
Geometric progression formula that computes smoothed annual compounding return.
How to Use the CAGR Calculator (Compound Annual Growth Rate)
- Enter beginning investment amount, final portfolio balance, and number of years elapsed.
Step-by-Step Example Calculation
5-Year Stock Portfolio Growth
Input Values:
beginningValue:10000
endingValue:25000
years:5
Worked Steps: Generates a 20.11% CAGR on a 150% total return.
Understanding Your Result
Shows annualized CAGR percentage along with total dollar gain and percentage return.
Factors That Affect the Result
- Horizon duration and capital appreciation.
When Should You Use This Calculator?
- Comparing stock portfolios, real estate equity, mutual funds, or revenue expansion across companies.
Assumptions & Limitations
- Assumes continuous compounding with no interim deposits or withdrawals.
Frequently Asked Questions
Calculation Accuracy & Reference Note
Standard corporate finance formula evaluated with double-precision floating point.