Compound Average Growth Rate Calculation

Compound Average Growth Rate (CAGR) Calculator

The Compound Average Growth Rate (CAGR) is a popular metric used to measure the average annual growth of an investment or business over a specified period. It represents the geometric progression ratio that provides a smoothed annual rate of return. CAGR is particularly useful because it accounts for the effect of compounding, providing a more realistic picture of growth than simple average growth.

CAGR is calculated using the following formula:

CAGR = [(Ending Value / Beginning Value) ^ (1 / Number of Years)] – 1

This calculator helps you determine the CAGR based on your initial and final values and the time period involved.

function calculateCAGR() { var beginningValue = parseFloat(document.getElementById("beginningValue").value); var endingValue = parseFloat(document.getElementById("endingValue").value); var numberOfYears = parseInt(document.getElementById("numberOfYears").value); var resultDiv = document.getElementById("cagrResult"); if (isNaN(beginningValue) || isNaN(endingValue) || isNaN(numberOfYears) || beginningValue <= 0 || numberOfYears <= 0) { resultDiv.innerHTML = "Please enter valid positive numbers for all fields."; return; } if (endingValue < 0) { resultDiv.innerHTML = "Ending Value cannot be negative."; return; } var cagr = Math.pow((endingValue / beginningValue), (1 / numberOfYears)) – 1; var cagrPercentage = (cagr * 100).toFixed(2); resultDiv.innerHTML = "

Compound Average Growth Rate (CAGR):

" + cagrPercentage + "%"; } .calculator-inputs, .calculator-result { margin-top: 20px; padding: 15px; border: 1px solid #ccc; border-radius: 5px; } .form-group { margin-bottom: 15px; } label { display: block; margin-bottom: 5px; font-weight: bold; } input[type="number"] { width: 100%; padding: 8px; border: 1px solid #ccc; border-radius: 4px; box-sizing: border-box; /* Ensures padding doesn't affect width */ } button { padding: 10px 15px; background-color: #4CAF50; color: white; border: none; border-radius: 4px; cursor: pointer; font-size: 16px; } button:hover { background-color: #45a049; } .calculator-result h3 { margin-top: 0; }

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