Average Annual Growth Rate (AAGR) Calculator

The Average Annual Growth Rate (AAGR) Calculator is a fundamental financial tool that calculates the simple arithmetic mean of annual growth rates over a specified period. Unlike Compound Annual Growth Rate (CAGR), which uses geometric mean, AAGR provides a straightforward average that's easier to understand and interpret.

AAGR is calculated by summing all the annual growth rates and dividing by the number of periods. This metric is particularly useful for businesses and investors who want to understand the average growth performance without the compounding effects. It's commonly used in financial analysis, business planning, and when comparing growth rates across different companies or industries.

Understanding AAGR helps you make informed decisions about business expansion, investment opportunities, and performance evaluation. It's especially valuable when analyzing companies with volatile growth patterns or when you need a simple average that doesn't account for the compounding effect of growth over time.