Calculate Compound Annual Growth Rate (CAGR) for investment performance analysis
| Year | Starting Value | Growth | Ending Value | Cumulative Return |
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A CAGR Calculator (Compound Annual Growth Rate Calculator) is an essential financial tool that measures the rate at which an investment grows annually over a specific time period. The CAGR Calculator provides a smoothed annual growth rate that accounts for the compounding effect, making it ideal for comparing different investments or analyzing long-term investment performance.
The CAGR Calculator uses the formula: CAGR = (Final Value / Initial Value)^(1/n) - 1, where 'n' is the number of years. This CAGR Calculator eliminates the volatility of year-to-year returns and provides a single, annualized growth rate that represents the investment's performance.
Use our CAGR Calculator for:
The CAGR Calculator differs from other return calculations:
When using the CAGR Calculator, consider these benchmarks:
While the CAGR Calculator is valuable, remember:
A good CAGR varies by investment type. Equity investments with 10-15% CAGR are considered good, while debt investments with 6-8% CAGR are reasonable.
CAGR shows annualized growth rate, while absolute return shows total percentage gain without considering time factor.
Yes, if your final value is less than initial value, the CAGR Calculator will show negative CAGR, indicating losses.