Free Compound Growth Calculator
Calculate the Compound Annual Growth Rate (CAGR) that represents the steady growth rate over multiple periods.
CAGR (%)
14.8698
Total Growth Factor2.000000
Total Return (%)100.0000
CAGR (%) vs Number of Periods
How to Calculate Compound Annual Growth Rate
Formula
CAGR = (Final / Initial)^(1/n) - 1
CAGR is the constant annual growth rate that would take the initial value to the final value over n periods. It smooths out volatility and gives a single rate that represents the equivalent steady growth. Multiply by 100 to express as a percentage.
Example Calculation
An investment grows from $1,000 to $2,000 over 5 years.
- 01Growth factor = 2000 / 1000 = 2.0
- 02CAGR = 2.0^(1/5) - 1 = 2.0^0.2 - 1
- 03= 1.14870 - 1 = 0.14870
- 04CAGR = 14.87% per year
- 05Total return = 100%
Frequently Asked Questions
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