Calculate CAGR (Compound Annual Growth Rate) of your investments. Free online CAGR calculator with formula, examples, and FAQ.
CAGR (Compound Annual Growth Rate) measures the mean annual growth rate of an investment over a specified period longer than one year. Unlike absolute returns, CAGR smooths out volatility and gives you a single annual rate that represents the steady growth of your investment. It is the most commonly used metric to compare different investment options.
CAGR = ((Final Value / Initial Value)^(1/n) - 1) × 100Where n is the number of years. CAGR represents the constant rate at which the investment would have grown if it had grown at a steady rate. It accounts for compounding and provides a more accurate picture of investment performance than simple average returns.
| Input | Output |
|---|---|
| Initial: $10,000, Final: $25,000, 5 years | CAGR: 20.11%, Absolute Return: 150% |
| Initial: $50,000, Final: $85,000, 7 years | CAGR: 7.87%, Absolute Return: 70% |
| Initial: $1,000, Final: $3,000, 10 years | CAGR: 11.61%, Absolute Return: 200% |