0 likes | 17 Views
Razorpayu2019s free online CAGR Calculator lets you calculate the compound annual growth rate for your investments over a period of time. Calculate CAGR in one minute.
E N D
What is CAGR? CAGR, or Compound Annual Growth Rate, is a measure used to understand the average yearly growth rate of an investment or business over a specific period. It takes into account the compounding effect, which means that the growth rate is calculated based on the initial investment and its subsequent earnings. Razorpay’s free online CAGR Calculator lets you calculate the compound annual growth rate for your investments over some time.
How to calculate CAGR? • Simplified steps to calculate the Compound Annual Growth Rate (CAGR): • Determine the starting value (Initial value) of your investment or asset. • Determine the ending value (Final value) of your investment or asset. • Decide on the duration of the investment or asset growth, usually measured in years. • Divide the Final value by the Initial value. • Raise the result to the power of 1 divided by the number of years. • Subtract 1 from the obtained value, then multiply by 100 to get the percentage.
CAGR FORMULA The CAGR formula is as follows: CAGR = (Ending Value / Beginning Value)^(1 / Number of Years) - 1 In this formula: "Ending Value" represents the final value of the investment or asset at the end of the specified period. "Beginning Value" represents the initial value of the investment or asset at the beginning of the specified period. "Number of Years" represents the total number of years over which the investment or asset has grown.