Calculate the compound annual growth rate of an investment. Enter your starting value, final value and investment period to understand annualized growth.
Enter your starting value, ending value and investment period to calculate the compound annual growth rate.
The annualized growth rate required to turn your initial value into the final value over the selected period.
Select a scenario to see how different investment outcomes translate into an annualized growth rate.
CAGR shows the constant annual growth rate that would take an investment from its starting value to its ending value over a selected period.
Total investment returns do not tell you how quickly the money grew. CAGR converts that growth into an annualized percentage, which makes investments with different time periods easier to compare.
CAGR is an annualized growth measure. It represents a constant compound growth rate for calculation purposes and does not mean that an investment actually grew at the same rate every year. Actual investment returns can fluctuate significantly. CAGR is also not suitable for investments with multiple cash flows during the measurement period.
CAGR means Compound Annual Growth Rate. It represents the annualized rate at which an investment would need to grow to move from its initial value to its final value over a specific period.
CAGR is calculated using the initial value, final value and number of years. The formula is CAGR = (Final Value / Initial Value) raised to the power of 1 divided by the number of years, minus 1.
No. CAGR is an annualized measure that smooths the growth between the starting and ending values. An investment may have experienced very different returns in individual years.