CAGR Calculator

Calculate the Compound Annual Growth Rate for your investment

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years

About CAGR Calculator

CAGR (Compound Annual Growth Rate) is the rate at which an investment grows annually to reach a given end value from its initial value, assuming the profits are reinvested each year. It is a useful measure to compare the growth rates of different investments over time.

How to Use This Calculator

  1. Enter the initial value of your investment
  2. Enter the final value after the investment period
  3. Enter the number of years
  4. Click "Calculate CAGR" to see your average annual growth rate

Features

  • Simple and quick CAGR calculation
  • Clear result display
  • Helps compare investment performance

Frequently Asked Questions

  • What is CAGR? CAGR stands for Compound Annual Growth Rate. It represents the average annual growth rate of an investment over a specified period of time, assuming the profits are reinvested each year.
  • How is CAGR calculated? CAGR is calculated using the formula:
    • CAGR=[Final ValueInitial Value^(1Years)]−1
  • Why use CAGR? CAGR provides a smoothed annual rate of growth, making it easier to compare the performance of different investments or assets over time.
  • Can CAGR be negative? Yes, if the final value is less than the initial value, the CAGR will be negative, indicating a loss over the period.