CAGR Calculator
Calculate Compound Annual Growth Rate to measure investment performance over time.
Calculate CAGR
Starting investment amount
Current/ending investment value
Investment duration in years
What is CAGR?
CAGR (Compound Annual Growth Rate) is the rate at which an investment grows annually over a specified period, assuming profits are reinvested. It smooths out volatility to show consistent growth.
Formula
CAGR = [(Final Value / Initial Value)^(1 / Years)] - 1
Example
Investment: $10,000
Final Value: $25,000
Time: 5 years
CAGR: 20.11% per year
Total Growth: 150%
When to Use CAGR
- Compare investment performance
- Evaluate mutual funds or stocks
- Measure business revenue growth
- Assess real estate appreciation