CAGR Calculator
Want to know the real annualized return on your investment? Our CAGR Calculator tells you the compound annual growth rate — giving you a clearer picture of investment performance than simple percentages.
What Is
CAGR (Compound Annual Growth Rate) measures the average annual growth rate of an investment over a specified period, assuming the profits were reinvested. It smooths out volatility to show the consistent growth rate.
How to Use
- Enter the initial value of your investment
- Enter the final value of your investment
- Enter the number of years you held the investment
- Click Calculate to see your CAGR percentage
- Compare CAGR across different investments to evaluate performance
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Frequently Asked Questions
What is a good CAGR?
A good CAGR depends on the asset class. Stocks historically average 7-10%. Growth investments might target 15%+. Anything above inflation (2-3%) means real growth.
CAGR vs average return?
CAGR shows the geometric average (compound growth). Average return is arithmetic and can be misleading when returns vary year to year.
Can CAGR be negative?
Yes, if your ending value is less than the starting value, CAGR will be negative — meaning you lost money on an annualized basis.
Does CAGR account for risk?
No, CAGR only shows the return. Two investments can have the same CAGR but very different risk levels and volatility.
CAGR for partial years?
You can use fractional years. For example, 2.5 years for an investment held for 30 months.