Rate of Return Calculator

Rate of Return Calculator to calculate the annual return rate or CAGR of an investment. The return rate calculator can be used for any business, stocks, real estate, or other investments.

How to calculate CAGR?

Following is the CAGR formula that shows how to calculate CAGR.

CAGR = ((Final Value / Initial Investment) ^ 1/years - 1) * 100

For example, let's say the initial capital required for an investment is $10,000, and you know that at the end of the 10 years, the investment would have gone up to $50,000.

To calculate the rate of return or CAGR for this investment, we plugin the numbers into the above CAGR calculation formula.

CAGR = (($50,000/$10,000)^1/10 - 1) * 100
CAGR = (5^1/10 - 1)*100
CAGR = (1.1746 - 1)*100
CAGR = 0.1746 * 100
CAGR = 17.46%

Below is a table that shows the annual compound growth rate for $50,000 to grow to $100,000 in a number of years.