Compound Annual Growth Rate (CAGR) Calculator
With the tool below, you can calculate Compound Annual Growth Rate.
CAGR:
0 %
CAGR Formula
CAGR = (Initial Value / Final Value) ^ (1 / n) – 1
| 1/Duration | |||
| CAGR = | Initial Value | - 1 | |
| Final Value |
What is CAGR?
The geometric progression ratio that yields a steady rate of return over a given length of time is known as the compound annual growth rate, or CAGR for short in the business and investment domains. Although it isn't an accounting phrase, CAGR is frequently used to characterize several aspects of a firm, including as revenue, units delivered, registered users, etc. The effect of periodic return volatility, which can make arithmetic means meaningless, is mitigated by CAGR. Comparing growth rates across different common domain data sets, such as the revenue growth of organizations within the same industry or sector, is especially helpful.