CAGR Calculator
Calculate Compound Annual Growth Rate of your investments
Investment Details
About CAGR
The Compound Annual Growth Rate (CAGR) is the mean annual growth rate of an investment over a specified period of time longer than one year. It represents one of the most accurate ways to calculate and determine returns for individual assets.
CAGR Results
Your Investment Grew at
14.3%
annualized rate
Initial Investment
$10,000
Final Value
$19,500
Total Growth
95%
Time Period
5 years
Yearly Growth
| Year | Value | Growth |
|---|---|---|
| 0 | $10,000 | – |
| 1 | $11,430 | 14.3% |
| 2 | $13,061 | 14.3% |
| 3 | $14,928 | 14.3% |
| 4 | $17,062 | 14.3% |
| 5 | $19,500 | 14.3% |
Understanding CAGR
What is CAGR?
The Compound Annual Growth Rate (CAGR) is a useful measure of growth over multiple time periods. It describes the rate at which an investment would have grown if it grew at a steady rate.
CAGR Formula
CAGR = (Ending Value / Beginning Value)1/Number of Years – 1
Why Use CAGR?
- Smoothes out investment returns
- Allows comparison between different investments
- Provides a clearer picture of long-term performance
- Helps in setting realistic investment expectations