Annual Growth Rate
CAGR Report
| Time to double your starting investment |
|---|
| Year | Growth | Value |
|---|
Your Compound Annual Growth Rate is -
We have truncated this numberdue to its large size
it may not be accurate
01 What is CAGR?
CAGR stands for compound annual growth rate and is often used to calculate the average growth (or average rate) of a single investment over a specified period of time.
The CAGR calculator is a useful tool for any trader who wants to easily estimate the gains and growth rate of their investments over some time.
02 Calculating the CAGR
To use the CAGR calculator, please enter the value of your initial investment value, the expected final value of your investment and the number of years of the investment.
Once you've filled in the values, please click 'Calculate' and the CAGR calculator will show you the mean annual growth rate of your investment. It allows you to decide if the investment yields a significant return over time.
03 How does a CAGR Calculator work?
To calculate CAGR, the following variables are required: the beginning value (or present value), the ending value, and the number of years (N). The following CAGR formula is used to calculate the values:
CAGR = [(Ending Value/Beginning Value) ^ (1/N)]-1
04 Behind the scenes of CAGR calculation
For example, let's say the initial value of your investment is $10,000, and the ending value is $21,000 in four years (N= 4 years). Next up, we will use the mathematical formula to calculate the CAGR.
CAGR = (21,000/10,000)^(1/4) – 1
CAGR = 16.93%
Compound Growth Matters
Now that we have showed you how to calculate the compound annual growth rate, let's explore what happens if there are different financial parameters in play. For the sake of the next example, let's assume you have invested $15,000, five years ago and you want to know what the CAGR (investment performance) was each year.
| Initial value | Final value | No. of years | CAGR |
|---|---|---|---|
| $10,000 | $12,000 | 5 | 3.714% |
| $10,000 | $14,000 | 5 | 6.961% |
| $10,000 | $16,000 | 5 | 9.856% |
| $10,000 | $18,000 | 5 | 12.475% |
| $10,000 | $20,000 | 5 | 14.870% |
Next, let's calculate how the CAGR of your initial investment of $15,000 would change over different periods of time. For the sake of our example, we'll use the period of 2,4,8 & 10 years to calculate the future value.
| Initial value | Final value | No. of years | CAGR |
|---|---|---|---|
| $10,000 | $20,000 | 2 | 3.714% |
| $10,000 | $20,000 | 5 | 6.961% |
| $10,000 | $20,000 | 8 | 9.856% |
| $10,000 | $20,000 | 10 | 12.475% |
Why use the CAGR Calculator?
There's no feeling quite like being one step ahead.
Hassle-free
It takes just a few moments to fill out the calculator fields. Our CAGR calculator will do the rest for you.
Integrated
Works well with all listed deposit currencies and all available trading instruments.
Reliable
Our CAGR calculator is trusted by thousands of traders around the world.
Flexible
Whether you want to risk a predetermined sum or percentage amount, we've got you covered.
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