Compound Annual Growth Rate Calculator

✖Ending Value is the value of the investment or metric at the end of the specified period.ⓘ Ending Value [EV]			+10% -10%
✖Starting Value is the initial value of the investment or metric at the beginning of the period.ⓘ Starting Value [SV]			+10% -10%
✖Number of Years to Track Growth is the total number of years over which the growth occurred.ⓘ Number of Years to Track Growth [n_y]			+10% -10%

✖Compound Annual Growth Rate is a measure of the geometric progression ratio that provides a constant rate of return over a specified time period.ⓘ Compound Annual Growth Rate [CAGR]

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Formula

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Compound Annual Growth Rate

Formula

`"CAGR" = ((("EV"/"SV")^(1/"n"_{"y"}))-1)*100`

Example

`"10.75663"=((("25000"/"15000")^(1/"5"))-1)*100`

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Compound Annual Growth Rate Solution

STEP 0: Pre-Calculation Summary

Formula Used

Compound Annual Growth Rate = (((Ending Value/Starting Value)^(1/Number of Years to Track Growth))-1)*100
CAGR = (((EV/SV)^(1/n_y))-1)*100
This formula uses 4 Variables

Variables Used

Compound Annual Growth Rate - Compound Annual Growth Rate is a measure of the geometric progression ratio that provides a constant rate of return over a specified time period.
Ending Value - Ending Value is the value of the investment or metric at the end of the specified period.
Starting Value - Starting Value is the initial value of the investment or metric at the beginning of the period.
Number of Years to Track Growth - Number of Years to Track Growth is the total number of years over which the growth occurred.

STEP 1: Convert Input(s) to Base Unit

Ending Value: 25000 --> No Conversion Required
Starting Value: 15000 --> No Conversion Required
Number of Years to Track Growth: 5 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

CAGR = (((EV/SV)^(1/n_y))-1)*100 --> (((25000/15000)^(1/5))-1)*100

Evaluating ... ...

CAGR = 10.756634324829

STEP 3: Convert Result to Output's Unit

10.756634324829 --> No Conversion Required

FINAL ANSWER

10.756634324829 ≈ 10.75663 <-- Compound Annual Growth Rate

(Calculation completed in 00.020 seconds)

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Created by Vishnu K

BMS College of Engineering (BMSCE), Bangalore

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< 7 Financial Metrics Calculators

Compound Annual Growth Rate

Go Compound Annual Growth Rate = (((Ending Value/Starting Value)^(1/Number of Years to Track Growth))-1)*100

Customer Selling Price

Go Customer Selling Price = Cost Price+(Profit Margin Percentage*Cost Price)

Return on Invested Capital

Go Return on Invested Capital = Net Operating Profit After Tax/Total Invested Capital

Days Sales Outstanding

Go Days Sales Outstanding = (Average Account Receivables/Total Net Credit Sales)*365

Days Payables Outstanding

Go Days Payables Outstanding = (Average Account Payables/Cost of Goods Sold)*365

EBIT

Go Earnings Before Interest and Taxes = Revenue-Operating Expense

Cost Plus Pricing

Go Cost Plus Pricing = Break Even Price*Profit Margin Goal

Compound Annual Growth Rate Formula

Compound Annual Growth Rate = (((Ending Value/Starting Value)^(1/Number of Years to Track Growth))-1)*100
CAGR = (((EV/SV)^(1/n_y))-1)*100

What is Compound Annual Growth Rate?

The CAGR formula provides a smoothed annual rate of growth, assuming that the investment or metric grows at a steady rate over the specified period. It is a useful measure for comparing the annual growth rates of different investments or for understanding the average annual growth of a business. It is commonly used to express the mean annual growth rate of an investment over a given period, smoothing out the fluctuations in the data.

How to Calculate Compound Annual Growth Rate?

Compound Annual Growth Rate calculator uses Compound Annual Growth Rate = (((Ending Value/Starting Value)^(1/Number of Years to Track Growth))-1)*100 to calculate the Compound Annual Growth Rate, The Compound Annual Growth Rate formula is defined as a metric used to measure the geometric progression ratio that provides a constant rate of return over a specified time period. Compound Annual Growth Rate is denoted by CAGR symbol.

How to calculate Compound Annual Growth Rate using this online calculator? To use this online calculator for Compound Annual Growth Rate, enter Ending Value (EV), Starting Value (SV) & Number of Years to Track Growth (n_y) and hit the calculate button. Here is how the Compound Annual Growth Rate calculation can be explained with given input values -> 10.75663 = (((25000/15000)^(1/5))-1)*100.

FAQ

What is Compound Annual Growth Rate?

The Compound Annual Growth Rate formula is defined as a metric used to measure the geometric progression ratio that provides a constant rate of return over a specified time period and is represented as CAGR = (((EV/SV)^(1/n_y))-1)*100 or Compound Annual Growth Rate = (((Ending Value/Starting Value)^(1/Number of Years to Track Growth))-1)*100. Ending Value is the value of the investment or metric at the end of the specified period, Starting Value is the initial value of the investment or metric at the beginning of the period & Number of Years to Track Growth is the total number of years over which the growth occurred.

How to calculate Compound Annual Growth Rate?

The Compound Annual Growth Rate formula is defined as a metric used to measure the geometric progression ratio that provides a constant rate of return over a specified time period is calculated using Compound Annual Growth Rate = (((Ending Value/Starting Value)^(1/Number of Years to Track Growth))-1)*100. To calculate Compound Annual Growth Rate, you need Ending Value (EV), Starting Value (SV) & Number of Years to Track Growth (n_y). With our tool, you need to enter the respective value for Ending Value, Starting Value & Number of Years to Track Growth and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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