Calculate CAGR (Compound Annual Growth Rate) for investments. Compare returns against market benchmarks, project future values, and track investment performance over time.
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CAGR (Compound Annual Growth Rate) is the most accurate way to measure investment performance over multiple years. Unlike simple average returns, CAGR accounts for the compounding effect of growth, giving you the true annualized return that would result in the same ending value if growth were perfectly consistent each year. This calculator helps investors, business analysts, and financial planners measure and compare growth rates across different investments, time periods, and asset classes.
CAGR stands for Compound Annual Growth Rate. It represents the rate at which an investment would have grown if it had grown at a steady rate every year. CAGR smooths out the volatility of year-over-year returns to show you the 'true' annual growth rate. For example, if an investment of $10,000 grows to $25,000 over 10 years, the CAGR tells you what constant annual return would have achieved that same result. CAGR is particularly useful for comparing investments with different holding periods or irregular returns.
CAGR Formula
CAGR = (Ending Value / Beginning Value)^(1/n) - 1CAGR provides the true annualized return accounting for compounding, unlike simple average returns which can be misleading over multi-year periods.
Compare stocks, bonds, real estate, and other assets on an equal footing regardless of holding period or when returns occurred.
See how your investments stack up against the S&P 500, bonds, inflation, and other benchmarks to evaluate true performance.
Use historical CAGR to project what your investments might be worth in the future, helping with retirement and financial planning.
Calculate revenue growth rates for business valuations, investor presentations, and strategic planning.
Understand the real growth rate of your portfolio to make better allocation and rebalancing decisions.
Measure how well your stock portfolio has performed over multiple years, accounting for all dividends and price changes.
Project how your retirement savings will grow based on historical market returns or target growth rates.
Calculate revenue or earnings CAGR to present growth metrics to investors or for acquisition analysis.
Measure property appreciation rates over your ownership period to evaluate investment performance.
Compare the performance of different mutual funds using CAGR to find consistent performers.
Determine what growth rate you need to achieve your financial goals by a target date.
CAGR (Compound Annual Growth Rate) is the average annual growth rate of an investment over a specified time period. It's calculated using the formula: CAGR = (Ending Value / Beginning Value)^(1/n) - 1, where n is the number of years. CAGR represents the steady growth rate that would yield the same result if compounded annually.