CAGR Calculator : Chris

CAGR Calculator
by: Chris
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Calculate the compound annual growth rate (CAGR) right here: 👇

💡 The Compound Annual Growth Rate (CAGR) is a useful measure that provides a smoothed annual rate of return of an investment, asset, or business metric over a specified time period. Unlike simple percentage calculations, CAGR offers a geometric progression rate, effectively showing what an investment would have yielded per annum had it grown at a steady rate.

CAGR is particularly valuable for comparing the growth rates of investments of varying sizes over different time periods. It’s widely used in the finance and investment sectors to gauge the performance of stocks, funds, assets, or even entire portfolios. Additionally, businesses often use CAGR to evaluate the growth of different segments or the company as a whole over multiple years.

The formula used in the calculator for computing the CAGR is:

In this formula:

  • End Value represents the final value of the investment or asset at the end of the period.
  • Initial Value is the value of the investment or asset at the beginning of the period.
  • Years is the duration of the period in years over which the investment grows from its initial to its final value.

The result is expressed as a percentage, indicating the average annual rate at which the investment has grown over the specified period. If the CAGR is positive, it indicates growth, while a negative CAGR indicates a decline in value over the period.

March 20, 2024 at 06:11PM
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