CAGR Calculator
Calculate Compound Annual Growth Rate with comprehensive investment analysis
What is a CAGR Calculator?
A CAGR (Compound Annual Growth Rate) calculator is an essential financial tool that measures the mean annual growth rate of an investment over a specified time period longer than one year. Unlike simple average returns, CAGR accounts for the compounding effect, providing a smoothed annual rate that represents what an investment would need to grow at each year to reach its final value from its initial value.
Our advanced CAGR calculator uses the precise mathematical formula: CAGR = (Ending Value / Beginning Value)^(1/Number of Years) - 1, expressed as a percentage. This calculation is crucial for comparing investments with different time horizons, evaluating portfolio performance against benchmarks, and making informed financial decisions. The tool also provides future value projections and comprehensive growth analysis.
Essential for investors analyzing stock performance, mutual fund returns, real estate appreciation, business revenue growth, portfolio managers benchmarking performance, financial advisors counseling clients, and anyone evaluating long-term investment opportunities. The calculator helps identify consistent performers, compare different asset classes, and set realistic return expectations for financial planning and retirement goals.
Start Value
Initial investment
End Value
Final amount
Time Period
Years invested
CAGR
Annual growth rate