CAGR (Compound Annual Growth Rate) is the business term that determines your average growth return on your invested value over a certain period. It defines your business growth rate and you can check your average growth rate with the CAGR calculator.
CAGR is the short form for Compound Average Growth Rate which shows how your business is doing in a certain period of time. This means with the CAGR calculator you can check whether your business growing or is down. The CAGR calculator calculates your average returns on your invested value with the help of initial invested value, final/return value, and the number of years.
With the CAGR calculator, you can track your organization's growth or returns on your invested amount. For every investor, it is very useful because they can assume their growth rate with a simple process.
There are multiple CAGR calculators in the online market but you must go for the one which is easy. Our CAGR calculator offers you the ease of use to calculate your Compound Annual Growth Rate.
Every individual investor or business can use the CAGR calculator to estimate the returns over a specific period of time. With CAGR investors can keep in mind several aspects that they have overlooked.
Although CAGR is not the exact number it shows the clear and accurate growth rate on your returns. If you are looking to invest in mutual funds and other options it will clear the picture.
Now you know the importance of CAGR to determine where to invest time to understand how to use the CAGR calculator. Here are the steps to calculate your CAGR with our calculator:
The CAGR formula to calculate the investments is represented by:
CAGR = (RV / IV) 1 / n – 1
It is a mathematical calculation that determines the real-time CAGR for any organization. The values stand for the following:
| RV | Future Value |
|---|---|
| IV | Investment Value |
| N | Time period in years |
Using a CAGR calculator offers several advantages when analyzing investments or business growth:
With the CAGR calculator, you can compare the growth rate of different investments and businesses over a certain period of time. This saves you time when you compare different investments with different growth patterns.
CAGR considers the effect of compounding which represents the volatile growth rates over the years. It provides you with a smooth growth rate that will clear the real performance of your investment or business.
CAGR represents the growth rate for your investment over multiple years thus you can evaluate long-term results. It is the best tool to evaluate the sustainable growth of your business.
When you invest in multiple sources there are certain investments that are volatile in nature. With the CAGR calculator, you can evaluate the more meaningful growth rate by lowering the impact of volatility.
The CAGR calculator produces the results in percentages means you get CAGR in percentage form. So you can easily understand it and convey it to others as well.
With the CAGR calculator, you can analyze different investments having different initial and final values. As a result, you can easily evaluate which is your best investment over the years.
Disclaimer
This website is provided "as is" without any representations or warranties, express or implied. The site offers CAGR (compound annual growth rate) value without any warranty for its accuracy. All financial decisions should be made in consultation with your financial advisor. This website is not responsible for and expressly disclaims all liability for damages arising from use, reference to, or reliance on any information contained within the site.