CAGR Calculator (Compound Annual Growth Rate)
Calculate the Compound Annual Growth Rate (CAGR) of your investment to understand its average yearly growth over time.
CAGR Calculation Result
CAGR
Total Growth
Investment Duration
CAGR represents the average annual growth rate of an investment assuming profits
are reinvested every year.
What Is CAGR?
CAGR, or Compound Annual Growth Rate, measures the average annual growth of an investment over a specific period of time. It smooths out yearly fluctuations and shows a single growth rate.
Why CAGR Is Important
- Helps compare different investments
- Shows true annualized returns
- Eliminates short-term volatility
CAGR vs Absolute Returns
Absolute returns show total growth, while CAGR shows how much an investment grows each year on average. CAGR is better for long-term comparison.
Who Should Use a CAGR Calculator?
- Mutual fund investors
- Stock market investors
- Long-term financial planners