Cagr Calculator

How to Use the CAGR Calculator

The CAGR Calculator is a tool designed to compute the Compound Annual Growth Rate and other financial metrics based on your investment data. Follow this step-by-step guide for precise calculations.

Step 1: Enter Your Initial Investment Value

Start by inputting your Initial Investment Value. This number represents the amount of money you initially invested. Enter the value using at least 0.01 as the minimum, ensuring your input is a valid number with up to 2 decimal places. Make sure the field is filled since it’s required for calculations.

Step 2: Input the Final Investment Value

Next, provide the Final Investment Value. This is the worth of your investment at the end of the period you are analyzing. Like the initial value, this must be at least 0.01 and accurate to two decimal places. This field is also required to proceed.

Step 3: Specify the Time Period

Indicate the Time Period (Years) over which your investment has grown. This period should be a number between 0.1 and 100 years, entered in increments of 0.1 years. This is a crucial requirement, as the duration impacts the calculation of the growth rate.

Step 4: Calculate the Results

Once all data is correctly entered, the calculator will compute various investment metrics, including:

• Compound Annual Growth Rate (CAGR): Calculates using the logic (pow(finalValue / initialValue, 1 / timePeriod) – 1) * 100. This will give you the annual growth rate in percentage rounded to two decimal places.
• Absolute Growth: This metric represents the total increase in your investment value. It’s calculated as finalValue – initialValue and displayed in USD rounded to two decimal places.
• Total Growth Rate: This is the overall growth rate of your investment calculated using ((finalValue – initialValue) / initialValue) * 100, and presented as a percentage up to two decimal places.
• Average Annual Return: This computes the annual return of your investment as ((finalValue – initialValue) / initialValue) / timePeriod * 100, presented in percentage and rounded to two decimal places.

Step 5: Interpret the Results

Review the outputs displayed by the calculator to understand the growth of your investment over time. This will provide insights into the efficiency and performance of your investment strategy, allowing for better financial planning and decision-making.