Skip to content
CAGR Calculators

CAGR Calculators

CAGR Calculator | Reverse CAGR Calculator

  • CAGR Calculator
  • Reverse CAGR Calculator
  • NPV Calculator
  • IRR Calculator
  • Blog
  • Toggle search form

CAGR Calculator: Calculate CAGR Online

CAGR Calculator
Calculate Compound Annual Growth Rate
$
$
Calculated CAGR
Your CAGR is: %

CAGR: What is CAGR?

The full form of CAGR is Compound Annual Growth Rate.

When an investment grows over a multi-year period, it is important to understand the overall growth, but it is also important to understand the annual rate of growth so that it can be compared to other investments.

In simple words, CAGR is a way to standardize and measure growth rate on an annual basis.

What is a CAGR Calculator?

CAGR Calculator calculates an annualized rate of growth for an investment.

In order to calculate the CAGR, the CAGR Calculator needs an initial value (the starting amount that you invested), the final value (the ending amount that the investment has grown to), and the time period for which the investment is made (how many years and months the money stayed invested).

Taking in these values, the CAGR Calculator can compute an annualized rate of return, assuming the investment grew in a compounding fashion.

How To Calculate CAGR Online

Let’s take a look at how to calculate Compound Annual Growth Rate using our online CAGR Calculator.

Suppose my father invested $10,000 in the year 2000, and that investment in the year 2023 is worth $65,000. The money stayed invested for the entire period of 23 years, without any addition, or withdrawals.

CAGR Calculator: Calculate CAGR Online

Step 1: Input the value for ‘Initial Amount’ or ‘Starting Value’ of the Investment.

Let’s say the initial amount is $10,000.

CAGR Calculator: Calculate CAGR Online

Step 2: Input the ‘Final Amount’ or ‘Ending Value’ of the Investment

Let’s say the final amount is $65,000.

CAGR Calculator: Calculate CAGR Online

Step 3: Enter the Time Period For Which The Money Stays Invested

Let’s say the investment is made for 23 years (+0 months), untouched.

CAGR Calculator: Calculate CAGR Online

Step 4: Once all values are filled, hit the ‘Calculate CAGR’ button.

Once you click the ‘Calculate CAGR’ button, you immediately get back a response on the web app.

CAGR Calculator: Calculate CAGR Online

There you have it, the CAGR = 8.48%

In this case, we see that $10,000 grows to $65,000 over a period of 23 years, at a growth rate of 8.48% compounding annually.

Formula For CAGR Calculation

The CAGR formula can be represented as the following:

CAGR formula: Calculate CAGR Online

CAGR = { [Final Amount] / [Initial Amount] } ^ (1 / [no. of years]) – 1

CAGR Calculation Example, Using the CAGR Formula

We can use the CAGR Formula to compute the compounded annual growth rate of an investment.

Suppose my father invested $10,000 in the year 2000, and that investment in the year 2023 is worth $65,000. The money stayed invested for the entire period of 23 years, without any addition, or withdrawals.

Using this information, we can calculate the CAGR.

Here,

  • final amount = $65,000
  • initial amount = $10,000
  • years = 23

Using the CAGR formula (65,000 / 10,000) ^ (1 / 23) – 1

We get the answer CAGR = 8.48%

So, on average, my father’s investment grew at a rate of 8.48% per year between the years 2000 and 2023.

CAGR Calculation Example, How To Calculate CAGR in Excel

If we perform a check to see if the numbers make sense and break down the growth year by year, we can see that the money ($10,000) deposited grows to $65,000 in 23 years, growing at an annual rate of 8.48% every year.

How To Calculate CAGR in Excel

Calculating CAGR in Excel is very easy. You just have to input three values (initial amount, final amount, and no. of years) in 3 different cells, and put the formula in a different cell.

Let’s use the same numbers as used in the previous example.

How To Calculate CAGR in Excel

For example, in this screenshot, I have set up the calculation this way:

  • Cell C4: Initial amount or starting value: 10,000
  • Cell C5: Final amount or ending value: 65,000
  • Cell C6: No. of years: 23

I have then put the formula for calculating CAGR in Excel in cell C8

  • Cell C8: =(C5 / C4)^(1 / C6) – 1

Using the ‘=’ sign tells Excel that the cell contains a formula and then Excel references and uses the numerical values in cells C4, C5, and C6 and applies the CAGR formula to show the result. The result shown in this case is 0.08478596835.

To represent the answer in easy-to-understand percentage terms, I copied the value in cell C9, and changed the format of the cell to “%”. So, the answer is 8.48%

How To Calculate CAGR in Google Sheets

Calculating CAGR in Google Sheets is easy. Similar to Excel, you have to input three values (initial amount, final amount, and no. of years) in 3 different cells, and enter the formula in a different cell of the spreadsheet.

Let’s use the same numbers as used in the previous example.

How To Calculate CAGR in Google Sheets

For example, in this screenshot, I have set up the calculation this way:

  • Cell C4: Initial amount or starting value: 10,000
  • Cell C5: Final amount or ending value: 65,000
  • Cell C6: No. of years: 23

I have then put the formula for calculating CAGR in Google Sheets in cell C8

  • Cell C8: =(C5 / C4)^(1 / C6) – 1

Using the ‘=’ sign tells Google Sheets that the cell contains a formula and then Google Sheets references and uses the numerical values in cells C4, C5, and C6 and applies the CAGR formula to show the result. The result shown in this case is 0.084785…

To represent the answer in easy-to-understand percentage terms, I copied the value in cell C9, and changed the format of the cell to “%”. So, the answer is 8.48%

How To Calculate CAGR in Python

In Python, we can create a function such as the following to calculate the CAGR, taking in the initial_amount, final_amount, and years as inputs, and using the CAGR formula.

def cagrCalculator(initial_amount, final_amount, years):
    cagr = (final_amount / initial_amount) ** (1/years) - 1
    return cagr

Once the function is defined, we can pass the values to the function and store the result in a variable ‘CAGR’ and print it to see the answer

CAGR = cagrCalculator(10000,65000,23)
print(CAGR)
How To Calculate CAGR in python

As we can see, using the same numbers as in the previous examples, we get a CAGR of 0.0847… or approximately 8.48%.

CAGR CALCULATOR, calculate cagr online, calculate compound annual growth rate online

CAGR Calculator | Reverse CAGR Calculator | Blog Posts

Learn Personal Finance

More From The Blog

Future Home Value Calculator: How Much Will Your Home Be Worth In 5, 10, or 20 years?
Reverse CAGR Calculator

Future Home Value Calculator: How Much Will Your Home Be Worth In 5, 10, or 20 years?

CAGR Formula in Google Sheets: 2 Easy Methods To Calculate CAGR in Google Sheets
CAGR Calculator

CAGR Formula in Google Sheets: 2 Easy Methods To Calculate CAGR in Google Sheets

def CAGR: How To Calculate CAGR in Python By Defining 1 Easy Function
CAGR Calculator

def CAGR: How To Calculate CAGR in Python By Defining 1 Easy Function

CAGR Formula in Excel: 2 Easy Methods To Calculate CAGR in Excel
CAGR Calculator

CAGR Formula in Excel: 2 Easy Methods To Calculate CAGR in Excel

S&P 500 CAGR: The Compound Annual Growth Rate of S&P 500 Index
CAGR Calculator

S&P 500 CAGR: The Compound Annual Growth Rate of S&P 500 Index

Population CAGR: India vs China Population Growth Rate In Last 60 Years
CAGR Calculator

Population CAGR: India vs China Population Growth Rate In Last 60 Years

Russell 2000 CAGR: The Compound Annual Growth Rate of Russell 2000 Index
CAGR Calculator

Russell 2000 CAGR: The Compound Annual Growth Rate of Russell 2000 Index

Bitcoin CAGR: Compound Annual Growth Rate of Bitcoin
CAGR Calculator

Bitcoin CAGR: Compound Annual Growth Rate of Bitcoin

Stock Market CAGR Returns: Average Annual Stock Market Returns In Last 30 Years
CAGR Calculator

Stock Market CAGR Returns: Average Annual Stock Market Returns In Last 30 Years

Dow Jones CAGR: The Compound Annual Growth Rate of Dow Jones Industrial Average
CAGR Calculator

Dow Jones CAGR: The Compound Annual Growth Rate of Dow Jones Industrial Average

Nasdaq CAGR: The Compound Annual Growth Rate of Nasdaq Composite Index
CAGR Calculator

Nasdaq CAGR: The Compound Annual Growth Rate of Nasdaq Composite Index

Our Financial Calculator Apps

download loan early payoff calculator app on ios
download loan early payoff calculator app on android
download cagr calculator app on ios
download cagr calculator app on android
download reverse cagr calculator app on ios
download reverse cagr calculator app on android
download irr calculator app
download irr calculator app on ios
DOWNLOAD NPV CALCULATOR APP
DOWNLOAD NPV CALCULATOR APP

Reach Out To Us

contact@finlightened.com

With ❤️ From Luxembourg

Sumeet Sinha

Sitemap

Navigation

  • CAGR Calculator
  • Reverse CAGR Calculator
  • IRR Calculator
  • NPV Calculator
  • Blog
  • About Us
  • Privacy Policy

Recent Posts

  • Future Home Value Calculator: How Much Will Your Home Be Worth In 5, 10, or 20 years?
  • Bitcoin CAGR: Compound Annual Growth Rate of Bitcoin
  • Nasdaq CAGR: The Compound Annual Growth Rate of Nasdaq Composite Index
  • Russell 2000 CAGR: The Compound Annual Growth Rate of Russell 2000 Index
  • Stock Market CAGR Returns: Average Annual Stock Market Returns In Last 30 Years
  • def CAGR: How To Calculate CAGR in Python By Defining 1 Easy Function
  • Population CAGR: India vs China Population Growth Rate In Last 60 Years
  • Dow Jones CAGR: The Compound Annual Growth Rate of Dow Jones Industrial Average
  • S&P 500 CAGR: The Compound Annual Growth Rate of S&P 500 Index
  • CAGR Formula in Excel: 2 Easy Methods To Calculate CAGR in Excel
  • CAGR Formula in Google Sheets: 2 Easy Methods To Calculate CAGR in Google Sheets

Copyright © 2023 CAGR Calculators.

Powered by PressBook WordPress theme