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About CAGR
CAGR, or Compound Annual Growth Rate, is a useful metric for measuring the mean annual growth rate of an investment, business revenue, or any value over a specified time period. Our free online CAGR Growth Analyzer provides instant results with a detailed bar chart to help you visualize growth trends.
Common Uses of CAGR
- Evaluating investment growth performance
- Comparing business revenue growth over time
- Forecasting future financial outcomes
- Analyzing market trends and industry growth
- Calculating personal wealth or savings growth
Frequently Asked Questions (FAQ)
1. What is CAGR?
CAGR stands for Compound Annual Growth Rate. It shows the average annual growth rate over a period of time, assuming the investment grows at a steady rate.
2. How is CAGR calculated?
The formula for CAGR is: ((Final Value / Initial Value)^(1 / Number of Years)) - 1
3. Why is CAGR important?
CAGR helps compare the growth of different investments or business metrics in a standardized way, ignoring short-term volatility.