# CAGR Calculator

## Calculate CAGR

Only need to fill in the "Initial Investment Input", "Final Maturity Value", and "Length of Time in Years" to calculate CAGR and draw charts and provide downloads

## What is CAGR

CAGR (Compound Annual Growth Rate), is a type of "annualized rate of return" in financial statements. If you are reading this website's blog backtesting article, you should be familiar with CAGR. The calculation is based only on the initial and final values of the investment amount, without considering the intermediate fluctuations. In fact, it is the compound interest in the compound interest table.

ex:

Principal 100, compound interest rate 20%, term is ten years => The final amount is 619.

Principal 100, final amount is 619, term is ten years => CAGR is 20%.

## CAGR Formula

CAGR $= \large\left(\frac{FV}{PV}\right)^{\frac{1}{n}} \normalsize- 1$

FV (Future Value): The final amount.

PV (Present Value): The principal.

n: The number of periods.

## CAGR Annual Return Calculator Usage

Only fill in the "Principal", "Final Maturity Amount", and "Term in Years". With compound frequency set to "yearly", you can calculate the CAGR and draw a chart based on the number of periods, and provide a download option.