CAGR Calculator
Calculate the compound annual growth rate of an investment
Free Online CAGR Calculator
Calculate the CAGR (Compound Annual Growth Rate) of any investment with our free online tool. CAGR is the standard metric for comparing performance across investments with different timeframes. Enter starting and ending values with the number of years to instantly get the CAGR, or use projection mode to estimate future value given an expected growth rate.
How It Works
- Choose mode: calculate CAGR from real values, or project a future value
- Enter the starting and ending investment values and number of years
- CAGR is calculated automatically in real time
- Use projection mode to model different growth rate scenarios
Frequently Asked Questions
What is CAGR?
CAGR (Compound Annual Growth Rate) is the rate at which an investment grows annually over a specified period. It represents the smooth annual growth rate that would produce the same final value starting from the initial value.
How is CAGR calculated?
The formula is: CAGR = (End Value / Start Value)^(1/years) - 1. For example, if a €10,000 investment grows to €16,105 over 5 years, the CAGR is (16,105/10,000)^(1/5) - 1 = 10%.
What is CAGR used for?
CAGR is used to compare the performance of portfolios, stocks, funds or any asset over time. It smooths out annual volatility and provides a comparable annualized growth rate.