CAGR Calculator

CAGR Calculator | Measure Investment Growth Accurately

CAGR Calculator

Calculate Compound Annual Growth Rate to accurately measure your investment performance over time

CAGR Calculator Calculate CAGR Compound Annual Growth Rate Investment Growth Calculator Financial Metric Investment Returns Financial Planning

Calculate Your CAGR

Use our calculator to determine the Compound Annual Growth Rate of your investments.

Your Compound Annual Growth Rate (CAGR) is:

0.00%

This represents the mean annual growth rate of your investment over the specified time period.

Understanding CAGR: The Complete Guide

Are you trying to measure the performance of your investments or business revenue over multiple years? The Compound Annual Growth Rate (CAGR) is the metric you need, and using a CAGR Calculator is the easiest way to find it. Unlike volatile year-over-year returns, CAGR provides a smoothed annual growth rate, giving you a clearer picture of your long-term performance.

Our easy-to-use CAGR Calculator does all the complex math for you. Simply enter your initial investment, the final value, and the number of years. In one click, you’ll get the precise CAGR percentage. This investment growth calculator is essential for comparing the performance of different assets like stocks, mutual funds, or even your entire portfolio.

Understanding how to calculate CAGR helps you make informed financial decisions. It answers the critical question: “What consistent annual return did this investment generate?” Whether you’re a seasoned investor or just starting your financial planning journey, mastering this financial metric is crucial for assessing investment returns and setting realistic financial goals.

Frequently Asked Questions

What is the main advantage of using CAGR? +
The main advantage of CAGR is that it smooths out the volatility of periodic returns into a single, streamlined annual growth figure. This makes it much easier to compare the performance of different investments over the same time period.
Is CAGR the same as average annual return? +
No. An average annual return simply averages the returns of each year, which can be misleading due to compounding. CAGR, however, takes compounding into account and provides the geometric average return, offering a more accurate representation of growth.
What are the limitations of the CAGR formula? +
The biggest limitation of CAGR is that it ignores volatility and risk. It assumes a smooth, constant growth path, which rarely happens in reality. It does not account for the intermediate ups and downs an investment experiences.
Can I use the CAGR calculator for metrics other than financial investments? +
Absolutely! The CAGR Calculator is versatile. You can use it to measure the growth of company revenue, website traffic, customer base, or any other metric that grows over time.
My CAGR result was 12%. Does this mean I made 12% every single year? +
Not necessarily. A 12% CAGR means your investment grew at an equivalent of 12% per year, compounded annually. In reality, the actual returns could have been -5% in one year, +30% in another, but the end result is equivalent to a steady 12% per year.
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Note: CAGR is a theoretical measure and does not reflect actual year-to-year fluctuations. It assumes a smooth growth path and does not account for investment risk or volatility. Past performance is not indicative of future results.