In order to calculate CAGR, you will need a few essential values. This includes the starting value, ending or finishing value, and the period of time over which you wish to measure growth.


Determine the starting value (SV) of an asset, for example, the price paid for a share of stock.
Determine the ending value (EV) or current market value of that asset.
Determine the period of time (T) you want to study, for example, the number of years, months, quarters, etc.;
, After you've gotten your information together, input your variables into the CAGR equation. The equation is as follows: CAGR=((EV/SV)^ 1/T)) -1., After your values have been inputted in the CAGR equation, simply solve for CAGR using the proper order of operations. That is, be sure to calculate the (1/T) first, because it is an exponent, then solve for EV/SV and raise that number to the power found in the first step. Finally, subtract 1 from the number you just found. The result will be your CAGR.


For example, if a portfolio of investments had an initial value of $10,000 that grew to $19,500 over 3 years, you would start with CAGR=(($19,500/$10,000)^(1/3))-1 and simplify to CAGR=((1.95)^(0.333))-1 and CAGR=1.249-1. Your final result would be CAGR=0.249, or 24.9%.
Identify the values needed to calculate CAGR.
Input these values in the CAGR formula.
Solve for CAGR.
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