CAGR Calculator

Calculate Compound Annual Growth Rate

Investment Details

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years

What is CAGR?

CAGR (Compound Annual Growth Rate) is the rate at which an investment would have grown if it grew at a steady rate compounded annually.

CAGR = (Final Value / Initial Value)^(1/Years) - 1

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CAGR Calculator – Compound Annual Growth Rate

Our CAGR Calculator helps you calculate the compound annual growth rate of an investment over a period of time. CAGR is used to compare investments with different time horizons.

CAGR Formula

CAGR = (Final Value / Initial Value)^(1/Years) - 1

Why Use CAGR?

  • Compare different investments on equal footing
  • Smooths out volatility to show average annual return
  • Widely used by analysts and fund managers

Frequently Asked Questions

What is a good CAGR?

A CAGR of 7-10% is considered good for long-term equity investments. Fixed deposits typically offer 5-7% CAGR.

Is CAGR the same as annual return?

No, CAGR assumes steady growth, while actual annual returns fluctuate. CAGR gives you the equivalent steady rate.