CAGR Calculator

Free CAGR Calculator

Calculate Compound Annual Growth Rate of Your Investments

The CAGR (Compound Annual Growth Rate) Calculator allows investors to determine the annual growth rate of an investment over a specific period, accounting for compounding. By entering the initial investment value, final value, and the number of years, this tool provides an accurate growth rate that represents the investment’s consistent annual performance. This calculator is ideal for comparing different investments, planning future goals, or analyzing historical returns. Beginners and experienced investors alike can benefit from using it to visualize long-term growth, track portfolio performance, and make more informed financial decisions. Understanding CAGR helps investors set realistic expectations, compare investment options, and plan for wealth accumulation over time.

CAGR Calculator

Calculate the Compound Annual Growth Rate of an investment.

Initial Investment

Final Investment

Number of Years

Currency

Calculation Results

CAGR

0.00%

Annual Growth Rate

Total Return

0.00

0.00% Growth

Time Period

0 Years

Investment Duration

Investment Summary

Initial Investment:

Final Value:

Growth Multiple: 0.00x

1,000 Would Become:

CAGR Calculator Guide

The Formula We Use

CAGR = (Ending Value ÷ Beginning Value)^(1 ÷ Years) − 1
Years = Investment Duration in Years
Growth Factor = Ending ÷ Beginning
Annual Growth = CAGR × 100%

Example Calculation

Start $10,000

End $18,000

Duration 5 years

Growth Factor = 18,000 ÷ 10,000 = 1.8
CAGR = 1.8^(1 ÷ 5) − 1 ≈ 12.47%
Annual Growth ≈ 12.47%

How to Use This Calculator

Enter your starting value and ending value.
Input the total number of years the investment was held.
Run the calculation to see the CAGR percentage.
Compare CAGR between different investments for better decisions.

Tips to Use CAGR Effectively

Use CAGR for comparison: It normalizes growth over time, perfect for comparing assets.
Ignore short term volatility: CAGR smooths ups and downs into a single rate.
Pair with risk measures: Combine CAGR with volatility or drawdowns to see full picture.
Don’t overestimate growth: Past CAGR doesn’t guarantee future returns.

This is educational content, not financial advice.

Benefits of Using CAGR Calculator

Measure Growth Accurately

Understand how investments grow annually over a period.

Instant Results

Calculate CAGR quickly using starting and ending values with time period.

Beginner-Friendly

Simple inputs make it easy for new investors.

Precise Calculation

Accurate results to analyze investment growth and returns.

Global Investment Support

Works with any currency or stock market worldwide.

Data Privacy

No data is stored; all calculations are performed in-browser.

Frequently Asked Questions

What is CAGR?

Compound Annual Growth Rate measures the mean annual growth of an investment over time.

Why use CAGR?

It helps compare growth rates of different investments efficiently.

Can it handle international investments?

Yes, input values in any currency or market.

Is it beginner-friendly?

Yes, simple interface with quick results.

Can I calculate historical CAGR?

Yes, enter past investment data to calculate.

Is my data secure?

All calculations are done locally; no data is shared or saved.