Compound Annual Growth Rate (CAGR) Calculator
The Compound Annual Growth Rate (CAGR) is a measure of the average annual rate of return on an investment over a specified period of time, assuming that profits were reinvested at the end of each year. It smooths out the volatility of an investment, providing a more stable view of its performance over time. CAGR is particularly useful for comparing the historical performance of different investments or assets.
function calculateCAGR() {
var beginningValue = parseFloat(document.getElementById("beginningValue").value);
var endingValue = parseFloat(document.getElementById("endingValue").value);
var numberOfYears = parseFloat(document.getElementById("numberOfYears").value);
var resultDiv = document.getElementById("result");
resultDiv.innerHTML = ""; // Clear previous result
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;
}
// CAGR formula: (Ending Value / Beginning Value)^(1 / Number of Years) – 1
var cagr = Math.pow((endingValue / beginningValue), (1 / numberOfYears)) – 1;
// Format the result as a percentage
var formattedCAGR = (cagr * 100).toFixed(2) + "%";
resultDiv.innerHTML = "
Compound Annual Growth Rate (CAGR):
" + formattedCAGR + "";
}
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