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