Calculate Compound Annual Growth Rate (CAGR) for your investments. Determine the annualized return over a specific time period.
CAGR (Compound Annual Growth Rate) measures the mean annual growth rate of an investment over a specified period longer than one year. It smooths out volatility to give you a single, annualized rate making it the standard metric for comparing investment performance across different asset classes and time horizons.
Where
Suppose an investment goes +50% in Year 1 and −50% in Year 2. The average annual return is 0% but you actually lost 25% of your money (₹100 → ₹150 → ₹75). CAGR correctly reports −13.4%. Always use CAGR for accurate performance measurement.
Enter beginning value
Input the starting value of your investment or business metric.
Enter ending value
Input the final value after the growth period.
Specify the period
Enter the number of years between the two values.
Get your CAGR
See the annualized growth rate and use it to compare with benchmarks.
Investors
Compare returns across stocks, mutual funds, real estate, and gold over different periods.
Business owners
Measure revenue or profit growth rate for investor presentations.
Analysts
Benchmark company performance against industry averages.
Students
Learn about geometric vs arithmetic mean in real-world finance contexts.
CAGR (Compound Annual Growth Rate) is the annualized average rate of return of an investment over a specified time period longer than one year.
CAGR = (Ending Value / Beginning Value)^(1/n) - 1, where n is the number of years.
No. CAGR represents the smoothed annualized return, assuming profits are reinvested. It's more accurate than simple average returns for measuring investment growth.