# CAGR Calculator

**Disclaimer:** Whilst every effort has been made in building this tool, we are not to be held
liable for any damages or monetary losses arising out of or in connection with the use of it. Full disclaimer.
This tool is here purely as a service to you, please use it at your own risk.

## What is CAGR?

CAGR stands for **compound annual growth rate** and is a representational measure of growth of an investment. To put it in simple terms, it represents the growth rate that gets you from the present value to
the future value in the specified time period and takes into account for compounding. CAGR is a useful measure because the value of investments can fluctuate wildly between periods. You can learn more about this in
our article what is CAGR?

As well as looking at current or past investments, you can also use the CAGR calculator to find the growth rate you might need in the coming months or years to reach the investment goals you're setting today. As an example, if you have $5,000 today and you want to reach $15,000 in 10 years time, you will need to find an investment that gives you a compound annual growth rate (CAGR) of 11.61%.

### Formula for compound annual growth rate

**CAGR Formula:**

(FV / PV) ^{1/n} - 1

The CAGR calculator uses the following formula:

**CAGR = (FV / PV) ^{1 / n} - 1**

FV = the future value of the investment

PV = the present value of the investment

n = the number of years

### Other calculators

For assistance with calculating the internal rate of return on an investment, see the IRR calculator. Alternatively, to calculate the interest rate on a loan, try the interest rate calculator.

If you have any problems using this calculator, please contact me.