CAGR Calculator
Use this CAGR Calculator to calculate the Compound Annual Growth Rate of an investment. CAGR shows the average annual growth rate over a specified time period.
Investment Summary
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Total Return
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Final Value
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Investment Growth
Year-wise Investment Growth
| Year | Starting Value | Ending Value | Growth % | Growth Amount |
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What Is CAGR?
CAGR (Compound Annual Growth Rate) represents the mean annual growth rate of an investment over a specified period, assuming profits are reinvested.
CAGR Formula
CAGR = (Final Value / Initial Value)1/n − 1
Why CAGR Matters
- Measures true investment performance
- Normalizes volatile returns
- Helps compare investments
- Useful for long-term planning
Frequently Asked Questions
No. CAGR smooths returns and represents an average annual growth rate.
Yes. If the final value is lower than the initial value, CAGR will be negative.
CAGR does not show volatility, but it is useful for long-term comparisons.