CAGR Calculator

Our free CAGR Calculator computes the Compound Annual Growth Rate of an investment over a given period. Enter the initial value, final value, and number of years to see how fast your investment grew annually.

What is CAGR?

CAGR (Compound Annual Growth Rate) is the rate at which an investment grows from its initial to final value, assuming it grows at a steady rate compounded annually. It smooths out volatile year-to-year returns into a single representative growth rate.

CAGR Formula

CAGR = (Final Value / Initial Value)^(1/n) − 1

Example

Investment grew from $1,00,000 to $2,00,000 in 5 years:
CAGR = (2,00,000 / 1,00,000)^(1/5) − 1 = 14.87%

Frequently Asked Questions

What is a good CAGR for investments?

A CAGR above 12% is generally considered good for equity investments. Fixed income returns typically range from 6–8%.

Is CAGR the same as annual return?

CAGR represents a smoothed annual return. Actual yearly returns may vary significantly.