Annual Growth Rate Calculator
Understanding Annual Growth Rate (AGR)
The Annual Growth Rate (AGR) is a fundamental metric used to measure the percentage change in a value over a one-year period. It's widely applied across various fields, including finance, economics, business, and population studies, to understand trends and performance.
How to Calculate AGR:
The formula for calculating the Annual Growth Rate is straightforward:
AGR = ((Ending Value – Beginning Value) / Beginning Value) * 100
- Ending Value: This is the value of the item at the end of the one-year period.
- Beginning Value: This is the value of the item at the beginning of the one-year period.
A positive AGR indicates growth, while a negative AGR signifies a decline. For example, if a company's revenue grew from $1,000,000 to $1,200,000 in a year, its AGR would be 20%.