Measure the true annual growth rate of your investment, business, or portfolio using the Compound Annual Growth Rate (CAGR) formula used by financial professionals.
Calculate the average annual growth rate of your investment over time.
CAGR represents the average annual growth rate of an investment over a specific period longer than one year. It smooths out fluctuations and provides a clear picture of consistent growth.
CAGR = (Ending Value / Beginning Value) ^ (1 / Years) − 1
If an investment grows from $1,000 to $2,000 in 5 years, CAGR shows the steady annual growth rate during that time.
You can also try our Break-even Calculator and Inventory Analysis Tool for better financial planning.