Calc

# CAGR Calculator

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Use this compound annual growth rate (CAGR) calculator to work out the yearly growth rate of an investment - the percentage rate that gets you from the initial investment to the future value.

#### Disclaimer

Whilst every effort has been made in building the CAGR calculator tool, we are not to be held liable for any special, incidental, indirect or consequential damages or monetary losses of any kind arising out of or in connection with the use of the calculator tools and information derived from the web site. This tool is here purely as a service to you, please use it at your own risk.

The calculations given by the CAGR calculator tool are only a guide. Please speak to an independent financial advisor for professional guidance. Read the full disclaimer.

## 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. 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%.

### What is the formula for CAGR?

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.