Compound Annual Revenue Growth Rate Calculator

Learn how to calculate cagr using a formula and a calculator or spreadsheet tool like excel.

Compound annual revenue growth rate calculator. Compound annual growth rate cagr helps to measure the growth of your investment over multiple time periods. Cagr calculator is free online tool to calculate compound annual growth rate for your investment over a time period. The cagr formula is a way of calculating the annual percentage yield apy 1 r n 1 where r is the rate per period and n is the number of compound periods per year. On this page is a compound annual growth rate calculator also known as cagr it takes a final dollar amount as input along with a time frame and starting amount.

For an investment the period may be shorter or longer than a year so n is calculated as 1 years or 365 days depending on whether you want to specify the period in years or days. Enter the beginning value ending value and the number of. Cagr is a term widely used by investment gurus and market analysts. Cagr stands for compound annual growth rate and is a representational measure of growth of an investment.

To get the cagr value for your investment enter the starting value or initial investment amount along with the expected ending value and the number of months or years for which you want to calulate the cagr. Compound growth rate can be defined as the average growth rate of investments over the years. The compound annual growth rate calculator. One way to look at compound growth is to take all peaks and valleys when considering investment prospects.

Calculate the compound annual growth rate cagr of an investment or business metric of interest. Compare average rate of change performance of investments and business metrics like sales revenue production quantities etc. What is cagr or compound annual growth rate. While reading a business magazine it is not uncommon to come across statements such as company x registered an impressive cagr of 20 between the years of 2010 and 2013 or with a cagr of 30 5 in 2 years the company has shown rapid growth.

Subtract the principal if you want just the compound interest. How to calculate compound annual growth rate article by. Keltner colerick compound annual growth rate cagr is a simple metric that shows the annual rate of return of an investment can be broadly defined over a certain number of years assuming the profits are reinvested. Average year end growth rates cannot provide us with an accurate measure of compound growth over several years.

The tool automatically calculates the average return per year or period as a geometric mean. The formula used in the compound interest calculator is a p 1 r n nt a. Multiply the principal amount by one plus the annual interest rate to the power of the number of compound periods to get a combined figure for principal and compound interest. This is especially true if the value of your investment has fluctuated widely during a specific time period.