CAGR Calculator
Measure the annual growth rate of your investments over a specific period.
CAGR Calculator
Measure the annual growth rate of your investments over time
How to use the CAGR Calculator
CAGR (Compound Annual Growth Rate) is the most reliable way to measure the performance of an investment that fluctuates in value over time. Unlike simple average returns, CAGR accounts for the effect of compounding.
To calculate your growth rate, enter the Initial Investment Value (what you started with) and the Final Investment Value (current value or sale price).
Finally, specify the Investment Duration in years. The calculator will immediately provide your CAGR, which is the "smoothed" annual rate at which your money grew. This makes it incredibly easy to compare a stock's performance against a mutual fund or a fixed deposit.
Formula Explained
The CAGR calculation uses a geometric average to determine a constant rate of return:
"I made 50% profit in total."
"My money grew by 8.4% every year."
Key Insight: CAGR is the best tool for comparing investments with different holding periods or highly volatile price paths.
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