## Annual Growth Rate

Time to double your
starting investment
Year Growth Value
We have truncated this number
due to its large size
it may not be accurate

### 01 What is CAGR?

CAGR stands for compound annual growth rate and is often used to calculate the average growth (or average rate) of a single investment over a specified period of time.

The CAGR calculator is a useful tool for any trader who wants to easily estimate the gains and growth rate of their investments over some time.

### 02 Calculating the CAGR

To use the CAGR calculator, please enter the value of your initial investment value, the expected final value of your investment and the number of years of the investment.

Once you've filled in the values, please click 'Calculate' and the CAGR calculator will show you the mean annual growth rate of your investment. It allows you to decide if the investment yields a significant return over time.

### 03 How does a CAGR Calculator work?

To calculate CAGR, the following variables are required: the beginning value (or present value), the ending value, and the number of years (N). The following CAGR formula is used to calculate the values:

CAGR = [(Ending Value/Beginning Value) ^ (1/N)]-1

### 04 Behind the scenes of CAGR calculation

For example, let's say the initial value of your investment is \$10,000, and the ending value is \$21,000 in four years (N= 4 years). Next up, we will use the mathematical formula to calculate the CAGR.

CAGR = (21,000/10,000)^(1/4) – 1

CAGR = 16.93%

## Compound Growth Matters

Now that we have showed you how to calculate the compound annual growth rate, let's explore what happens if there are different financial parameters in play. For the sake of the next example, let's assume you have invested \$15,000, five years ago and you want to know what the CAGR (investment performance) was each year.

Initial value Final value No. of years CAGR
\$10,000 \$12,000 5 3.714%
\$10,000 \$14,000 5 6.961%
\$10,000 \$16,000 5 9.856%
\$10,000 \$18,000 5 12.475%
\$10,000 \$20,000 5 14.870%

Next, let's calculate how the CAGR of your initial investment of \$15,000 would change over different periods of time. For the sake of our example, we'll use the period of 2,4,8 & 10 years to calculate the future value.

Initial value Final value No. of years CAGR
\$10,000 \$20,000 2 3.714%
\$10,000 \$20,000 5 6.961%
\$10,000 \$20,000 8 9.856%
\$10,000 \$20,000 10 12.475%

## Why use the CAGR Calculator?

There's no feeling quite like being one step ahead.

### Hassle-free

It takes just a few moments to fill out the calculator fields. Our CAGR calculator will do the rest for you.

### Integrated

Works well with all listed deposit currencies and all available trading instruments.

### Reliable

Our CAGR calculator is trusted by thousands of traders around the world.

### Flexible

Whether you want to risk a predetermined sum or percentage amount, we've got you covered.

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