CAGR Calculator- Compound Annual

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First of all. CAGR stands for compound annual growth rate, and here in this section we have CAGR calculator for you, well a CAGR concept stands for the average price at which some value or we can say some kind of investment will grow over a certain period.

Here one thing to note is that the amount that we are taking will compound in the chosen period.

The formula which is used for this purpose is CAGR = ( EV /SV)^ 1/n -1 here in this formula

• EV = it stands for investment ending value, what will be the value of the investment at the end of the process when the thing is done.

• SV = it stands for investment starting value, what will be the value of the investment at the beginning of the process.

• N = here n stands for some day or time for which the investment is to be taken, that means some months, years or days.

The process to calculate CAGR

• We can use the above formula for this purpose, let's take an example to suppose we have in the starting the value of 1000 and this value have been grown to 10,000 in the next three year, therefore to calculate CAGR for this we can perform the following

CAGR = (1000/1000) ^ 1/3 -1, after that we have solved this, the CAGR of this will come out to be 1.154

Uses of CAGR

The compound annual growth rate is one of the essential concepts which is applied in the finance, the primary purpose of this concept to find what will be the growth of every single investment in a given period o time.