# CAGR Calculator

## CAGR Calculator - Compound annual growth rate(CAGR) Calculator

• Initial Investment: How much money you invested
• Final Amount: the final amount the investment grown to
• Years to reach goal how many years you have invested to reach final amount
Initial Investment
Final Amount
##### 20000
Compound annual growth rate(CAGR)

### What is CAGR ?

Compound Annual Growth Rate (CAGR) is a measure of the average yearly growth of your investments over a certain time period. It tells you the average rate of return you have earned on your investments every year. CAGR is very useful for investors because it is an accurate measure of investment growth (or fall) over time.

### The CAGR Formula

##### Formula for Compound Annual Growth Rate (CAGR) is:
CAGR =(Ending balance/beginning balance)1/n - 1
• Ending balance is the value of the investment at the end of the investment period.
• Beginning balance is the value of the investment at the beginning of the investment period, it is simply the amount you invested before getting any return.
• N is the number of years you have invested.
• Example of CAGR calculation:

If you have invested 50,000 in 2015 and current balance is 1,20,000, here is how we calculate CAGR.

CAGR = (1,20,000/50,000)1/5 - 1 CAGR = 19.14%