Calculating Annual Rate of Return Over Multiple Years in Excel

Compound Annual Growth Rate (CAGR) Calculator

The Compound Annual Growth Rate (CAGR) is a popular metric used to measure the annualized growth rate of an investment over a specified period of time longer than one year. It smooths out the volatility of returns, providing a single, representative growth rate for the entire period. CAGR is particularly useful for comparing the performance of different investments over time.

.calculator-container { font-family: sans-serif; border: 1px solid #ccc; padding: 20px; border-radius: 8px; max-width: 500px; margin: 20px auto; box-shadow: 0 2px 4px rgba(0,0,0,0.1); } .calculator-container h2 { text-align: center; margin-bottom: 15px; color: #333; } .calculator-container p { font-size: 0.9em; color: #555; line-height: 1.5; margin-bottom: 20px; } .calculator-inputs { display: grid; grid-template-columns: 1fr; gap: 15px; } .input-group { display: flex; flex-direction: column; } .input-group label { margin-bottom: 5px; font-weight: bold; color: #444; } .input-group input { padding: 10px; border: 1px solid #ddd; border-radius: 4px; font-size: 1em; } .input-group input:focus { outline: none; border-color: #007bff; box-shadow: 0 0 0 2px rgba(0, 123, 255, 0.25); } .calculator-inputs button { padding: 12px 20px; background-color: #007bff; color: white; border: none; border-radius: 4px; font-size: 1.1em; cursor: pointer; transition: background-color 0.3s ease; margin-top: 10px; } .calculator-inputs button:hover { background-color: #0056b3; } .calculator-result { margin-top: 25px; padding: 15px; background-color: #e9ecef; border: 1px solid #ced4da; border-radius: 4px; text-align: center; font-size: 1.2em; font-weight: bold; color: #333; } function calculateCAGR() { var startingValue = parseFloat(document.getElementById("startingValue").value); var endingValue = parseFloat(document.getElementById("endingValue").value); var numberOfYears = parseFloat(document.getElementById("numberOfYears").value); var resultElement = document.getElementById("result"); if (isNaN(startingValue) || isNaN(endingValue) || isNaN(numberOfYears)) { resultElement.textContent = "Please enter valid numbers for all fields."; return; } if (startingValue <= 0) { resultElement.textContent = "Starting Value must be greater than zero."; return; } if (numberOfYears <= 0) { resultElement.textContent = "Number of Years must be greater than zero."; return; } var cagr = Math.pow((endingValue / startingValue), (1 / numberOfYears)) – 1; var percentageCAGR = (cagr * 100).toFixed(2); resultElement.textContent = "CAGR: " + percentageCAGR + "%"; }

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