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Compound Annual Growth Rate

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`CAGR = ( "EV" "/" "BV" )^(1/ "t" ) - 1`
`(t)"number of periods"`
`(BV)"Beginning Value"`
`(EV)"Ending Value"`

The Compound Annual Growth Rate (CAGR) calculator computes the fixed growth rate achieved over a period of time based on a beginning and ending value. 

INSTRUCTIONS: Choose your preferred currency units and enter the following:

  • (t) Number of Periods,
  • (BV) Beginning Value. 
  • (EV) Ending Value.

CAGR: The calculator will return the CAGR as a percentage.  With the automatic currency conversion, you can compute the CAGR of an investment that had a beginning value of X in Euros and an ending value of Y in Chinese Yuan.

The Math / Science

The CAGR formula calculates the periodic compounded growth rate over a number of periods (t) based on a Ending Value (EV) and a Beginning Value (BV). In essence, it calculates the fixed periodic growth (e.g. interest) rate that would have resulted in converting the Beginning Value to the Ending Value over the period of time.   The "A" term in the acronym CAGR implies an annual period; however, one can calculate the compounded growth rate for any size period.  CAGR is, nonetheless, the commonly used term, and an annualized period is most commonly used.

CAGR is commonly used to measure past performance of investments.

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