CAGR - Compound Annual Growth Rate Made Easy

CAGR or Compound Annual Growth Rate is the year over year growth rate applied to an investment or other part of a company's activities over a multiple-year period. This tend to help investors identify the average growth they do for their initial investment over several years.

This is usually useful to determine if your business is delivering a good profit ratio or you should have your money put in the bank.

The formula for calculating CAGR : (Current Value/Base Value)^(1/# of years) - 1.

if you do not want to trouble yourself with equations and you just need a CAGR Calculation then you can use this free tool : http://www.investopedia.com/calculator/CAGR.aspx

Enjoy :)