Compound annual growth rate (or CAGR in short) is used by many traders worldwide to calculate the average growth of their investments and estimate the gains over a set time period. In just a couple of easy steps, you can calculate the CAGR for your investments.

Enter the initial investment value Enter the final value of your investment Enter the number of investment periods (months, years, etc.) Click the 'Calculate' button

In order to calculate CAGR, the user is required to fill in the following fields: the beginning (or present) value, the final value, and the number of investment periods (N). The following CAGR formula is used to calculate the values:

CAGR = [(Ending Value/Beginning Value) ^ (1/N)]-1

Example: If the initial value of your investment was $20,000, and the ending value was $30,000 in three years (N= 3 years), the cagr calculation would be performed as follows:

CAGR = (30,000/20,000)^(1/3) - 1 CAGR = 14.47%