CAGR Calculator – Compound Annual Growth Rate

CAGR Calculator

Calculate Compound Annual Growth Rate of your investments

Investment Details

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About CAGR

The Compound Annual Growth Rate (CAGR) is the mean annual growth rate of an investment over a specified period of time longer than one year. It represents one of the most accurate ways to calculate and determine returns for individual assets.

CAGR Results

Your Investment Grew at

14.3%

annualized rate

Initial Investment

$10,000

Final Value

$19,500

Total Growth

95%

Time Period

5 years

Yearly Growth

Year Value Growth
0 $10,000
1 $11,430 14.3%
2 $13,061 14.3%
3 $14,928 14.3%
4 $17,062 14.3%
5 $19,500 14.3%

Understanding CAGR

What is CAGR?

The Compound Annual Growth Rate (CAGR) is a useful measure of growth over multiple time periods. It describes the rate at which an investment would have grown if it grew at a steady rate.

CAGR Formula

CAGR = (Ending Value / Beginning Value)1/Number of Years – 1

Why Use CAGR?

  • Smoothes out investment returns
  • Allows comparison between different investments
  • Provides a clearer picture of long-term performance
  • Helps in setting realistic investment expectations

CAGR Calculator — Description & Usage

What Is This Tool?

The CAGR (Compound Annual Growth Rate) Calculator helps investors and businesses determine the mean annual growth rate of an investment over a specific period of time. It smooths out fluctuations to show a consistent growth rate, making it easier to compare investments and track performance.

  • Calculate the average annual growth rate of an investment.
  • Compare growth across different investments or portfolios.
  • Ideal for long-term investment planning and performance analysis.

Why Use the CAGR Calculator?

Track Investment Growth

Understand how your investments have grown consistently over time.

Compare Alternatives

Easily evaluate and compare returns of multiple investment options.

How to Use This Tool (Step-by-Step)

  • Enter the initial investment value — the starting amount of your investment.
  • Enter the final investment value — the ending value after a specific period.
  • Enter the investment duration — in years.
  • Click Calculate — the tool will show the CAGR percentage representing average annual growth.
  • Analyze results — use CAGR to compare investment performance or project future growth.

Pro Tips for Best Results

  • Use CAGR for long-term investments rather than short-term fluctuations.
  • Combine CAGR with other metrics like ROI or total return for a complete analysis.
  • Keep time periods consistent when comparing different investments.
  • Use CAGR to project potential growth but consider market risks and volatility.

Use the CAGR Calculator to measure consistent investment growth and make smarter financial decisions!