CAGR Calculator

Calculate Compound Annual Growth Rate (CAGR) to measure the mean annual growth rate of your investments over a specified time period

Investment Details

Initial Investment Value ($)

Final Investment Value ($)

Investment Period (Years)

Results

Enter your investment details to calculate the CAGR

What is CAGR?

The Compound Annual Growth Rate (CAGR) is a financial metric that represents the mean annual growth rate of an investment over a specified time period longer than one year.

It provides a smoothed annual rate of return, eliminating the effects of volatility and providing a clearer picture of investment performance.

CAGR Formula

CAGR = [(Final Value / Initial Value)^1/Years] - 1

Where:
• Final Value = Ending investment value
• Initial Value = Starting investment value
• Years = Investment period in years

Frequently Asked Questions

What does CAGR measure?

CAGR measures the mean annual growth rate of an investment over a specified time period longer than one year. It represents one of the most accurate ways to calculate and determine returns for anything that can rise or fall in value over time.

Is CAGR the same as annualized return?

Yes, CAGR is often referred to as the annualized return. Both terms describe the geometric average return over a specified time period.

What are the limitations of CAGR?

CAGR doesn't account for investment risk or volatility. It assumes a smooth growth rate which rarely happens in reality. It also doesn't consider cash flows in or out during the investment period.

Can CAGR be negative?

Yes, if your investment has decreased in value over the period, the CAGR will be negative, representing an annualized loss.

Benefits of Using Our CAGR Calculator

Accuracy

Get precise CAGR calculations without manual formula errors.

Visualization

Understand your investment growth through interactive charts and graphs.

Free & Accessible

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