CAGR Calculator
Calculate Compound Annual Growth Rate to measure investment performance over time.
FAQ
CAGR Calculator FAQ
What is CAGR?
CAGR (Compound Annual Growth Rate) is the mean annual growth rate of an investment over a specified period longer than one year. It smooths out volatility to show the equivalent steady growth rate.
How is CAGR different from absolute return?
Absolute return shows total growth (e.g., 150% over 5 years) while CAGR shows the equivalent annual rate (e.g., 20.11% per year). CAGR is better for comparing investments of different durations.
What is the CAGR formula?
CAGR = (Ending Value / Beginning Value)^(1/Years) - 1. It calculates the rate at which an investment would have grown if it grew at a steady rate annually.
What is a good CAGR?
It depends on the asset class. Fixed deposits: 5–7%, Bonds: 6–9%, Large-cap stocks: 10–14%, Small-cap stocks: 14–20%. Compare CAGR against inflation (6–7%) to see real returns.
Does CAGR account for volatility?
No, CAGR smooths out all yearly fluctuations and shows only the equivalent steady growth rate. It does not reflect the actual year-to-year volatility of your investment.
Free CAGR Calculator — Compound Annual Growth Rate
Calculate the Compound Annual Growth Rate (CAGR) of any investment with our free online calculator. Enter the beginning value, ending value, and investment duration to find the equivalent annual growth rate that smooths out yearly fluctuations. CAGR is the industry standard for comparing investment returns across different time periods and asset classes. Use it to evaluate mutual fund performance, stock returns, business revenue growth, or any metric that changes over time.
How to Use This Tool
- Enter the initial (beginning) investment value.
- Enter the final (ending) value.
- Enter the number of years.
- View the CAGR percentage and absolute return.
Key Features
- Accurate CAGR calculation using the standard formula
- Shows absolute return alongside annualized growth
- Compare investments of different durations
- Useful for stocks, mutual funds, real estate, and business metrics
- Instant results with no sign-up required
Related tools
Age Calculator
Free online age calculator - calculate exact age in years, months, and days from any date of birth. Get precise age calculation with breakdown by days lived.
Open tool 📅Date Difference Calculator
Free date difference calculator - find the exact difference between two dates in days, weeks, months, and years. Perfect for countdown and duration calculations.
Open tool Popular 📊Percentage Calculator
Free percentage calculator - calculate percentages, percentage change, discount percentages, and percentage of a number. Essential for math, finance, and sales.
Open tool ⚖️BMI Calculator
Free BMI calculator - calculate Body Mass Index with health category classification (underweight, normal, overweight, obese) and health risk assessment. Health tool.
Open tool