Compound Annual Growth Rate (CAGR) Calculator

Calculate CAGR, percent return and simple average annual return with our easy-to-use calculator.

Result Cagr 0% Investment Return 0% Simple Average Annual Return 0%

Cagr Formula

Cagr = ((Final value / Initial value) ^ (1 / Years) - 1) * 100

Initial value: $10,000 Final value: $14,000 Years: 5 Cagr = ((14000 / 10000) ^ (1 / 5) - 1) * 100 = 6.96%

Investment Return Formula

Investment return = ((Final value - Initial value) / Initial value) * 100

You invested $1000 initially and ended up with $1800. Your investment return is 80%.

Simple Average Annual Return Formula

Simple average annual return = Investment return / Years

The company earned a 12% return on its investment over 5 years. Therefore, the simple average annual return is 2.4%.

Meaning

The Compound Annual Growth Rate (CAGR) is a measure that shows the average rate at which an investment, asset, or business has grown over a specified period of time. It takes into account both the growth of the initial value and any subsequent increases in value, giving you an idea of the overall performance of the investment or business.