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### Compound Annual Growth Rate CAGR Formula and Calculator

Compound Annual Growth Rate CAGR Formula and Calculator

CAGR is the average compound annual growth rate of an investment result. On can also think of CAGR as the mean rate of return over a period of time.

Formula

*CAGR = [ ( E _{B} / B_{B} ) ^{1 / n} - 1 ] · 100 *

Where:

*E _{B}* = Ending value of investment ( $ )

*B*= Beginning value of investment ( $ )

_{B}*n*= number of years

CAGR = average compound annual growth rate %

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