Calculate the Compound Annual Growth Rate of your investment with our free CAGR Calculator. Enter the initial investment, final investment value, and investment period to quickly calculate your annualized investment return.

What is CAGR?

CAGR stands for Compound Annual Growth Rate. It represents the average annual growth rate of an investment over a specific period, assuming the investment grows at a compounded rate. CAGR is commonly used to evaluate and compare the long-term performance of investments.

CAGR Formula

The CAGR formula uses the initial investment value, final investment value, and investment period to calculate the annualized growth rate. The result is expressed as a percentage and can be used to compare investment performance over different time periods.

How to Calculate CAGR?

To calculate CAGR, enter the initial investment, final investment value, and number of years into the CAGR Calculator above. The calculator uses these values to calculate the annualized growth rate of your investment.

CAGR vs Absolute Return

CAGR and absolute return are different ways of measuring investment performance. Absolute return shows the total percentage gain or loss from the initial investment to the final value. CAGR shows the annualized growth rate over the entire investment period.

CAGR Calculator for Mutual Funds

CAGR can be used to measure the annualized growth of a mutual fund investment when you know its starting value, ending value, and investment period. It can also help compare the long-term growth of different investments.

CAGR Calculator for Mutual Funds

CAGR is widely used to evaluate the long-term performance of mutual funds. You can use the CAGR Calculator to estimate the annualized growth of a mutual fund investment when you know its starting value, ending value, and investment period.

CAGR Calculator FAQs

What does CAGR mean?

CAGR means Compound Annual Growth Rate. It represents the annualized growth rate of an investment over a specific period, assuming compounded growth.

CAGR is calculated using the initial investment value, final investment value, and investment period. The result shows the annualized growth rate as a percentage.

No. CAGR represents the annualized growth rate over the entire investment period. Actual investment returns can vary from year to year.

Yes. CAGR can be negative when the final investment value is lower than the initial investment value.

Yes. If the final investment value is lower than the initial value, the CAGR will be negative.