CAGR Calculator is a tool that helps you calculate the Compound Annual Growth Rate (CAGR) — a useful metric when you want to see the average rate at which an investment, business, or other quantity has grown over multiple years.
🎯 What It Does
- You enter an initial value (what you started with), a final value (what it’s become), and the number of years between them.
- The tool applies the formula: > CAGR = (Final Value ÷ Initial Value)^(1 ÷ Years) − 1
- It then outputs:
- The CAGR (as a percentage)
- Total growth over the period
- Growth factor (how many times your starting value multiplied)
- Absolute gain or loss
- Annualized return
✅ Why It’s Useful
- Lets you compare different investments or business results on a normalized basis, even if the time periods differ.
- Helps you understand actual effective growth, especially when returns are compounding instead of linear.
- Useful for forecasting: if you know past CAGR, you can estimate future value, given similar growth.
- Great for evaluating things like revenue growth, investment portfolios, or startup valuation increases.
If you want clarity on how your investment or business performance really stacks up year over year, using the CAGR Calculator gives you insight beyond simple averages—showing the true rate at which something has grown (or declined) over time.
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