Best CAGR Calculator App to Track Your Investment Growth
Are you looking for a simple and efficient way to measure your investment growth over time? A CAGR calculator app is the perfect tool for investors who want to calculate the Compound Annual Growth Rate (CAGR) of their investments without the hassle of complex formulas.
CAGR Calculator
Calculate the Compound Annual Growth Rate of your investment
Calculate CAGR
Calculating…
What is CAGR?
Compound Annual Growth Rate (CAGR) is a measure of the annual growth rate of an investment over a specified time period longer than one year. It represents one of the most accurate ways to calculate and determine returns for anything that can rise or fall in value over time.
CAGR smooths out the volatility of returns over a period, providing a clearer picture of an investment’s performance. It’s particularly useful when comparing investments with different time horizons or when evaluating the performance of an investment against benchmarks.
CAGR Formula
The formula for calculating CAGR is:
Where:
- Final Value = The ending value of your investment
- Initial Value = The beginning value of your investment
- Time Period = The number of years between the initial and final values
The result is expressed as a percentage and represents the rate at which an investment would have grown if it grew at a steady rate.
Examples
Example 1: If you invested $10,000 that grew to $16,000 over 5 years, the CAGR would be:
CAGR = ($16,000 / $10,000)1/5 – 1 = 9.86%
This means your investment grew at an average rate of 9.86% per year over the 5-year period.
Example 2: If your investment of $5,000 grew to $7,500 over 3 years, the CAGR would be:
CAGR = ($7,500 / $5,000)1/3 – 1 = 14.47%
This means your investment grew at an average rate of 14.47% per year over the 3-year period.
Checkout this Wikipedia Page for Indepth Knowledge about CAGR
Check our other Tools for your Financial Needs 👉 StockAverageCalculator IllinoisPayCheckCalculator PennyStockAverageCalculator EarningPerShareCalculator StockSplitCalculator DividendYieldCalculator