CAGR Calculator
Calculate compound annual growth rate over a period.
10,000,000원 → 20,000,000원 (5년)
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Overview
The CAGR (Compound Annual Growth Rate) Calculator computes the mean annual growth rate over a specified period. CAGR smooths out volatility into a single rate, making it ideal for comparing business performance, revenue growth, and investment returns across different time frames.
Formula
CAGR (%) = ((Ending Value ÷ Beginning Value) ^ (1 ÷ Years) − 1) × 100
How to Use
- 1Enter the beginning value.
- 2Enter the ending value.
- 3Enter the number of years.
- 4Click 'Calculate' to see the CAGR.
Tips
- ✔CAGR smooths fluctuations — actual year-by-year growth rates may vary widely.
- ✔Compare your CAGR to industry benchmarks for an objective assessment.
- ✔CAGR over very short periods (1–2 years) may not be meaningful.
- ✔Apply CAGR to revenue, profit, users, and other KPIs for a holistic view.
- ✔Past CAGR does not guarantee future growth — use it as a reference only.
FAQ
Q. How does CAGR differ from simple average growth?
Simple average growth is an arithmetic mean of annual rates, while CAGR is a geometric mean that accounts for compounding. CAGR more accurately represents actual investment performance.
Q. When should I use CAGR?
Use it for comparing revenue growth, investment returns, and market size projections. It is especially useful when comparing performance across different time periods.
Q. What does a negative CAGR mean?
It means the value declined on average over the period. For example, a CAGR of −5% means the value shrank by about 5% each year on a compounded basis.
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