CAGR Calculator (Compound Annual Growth Rate)

Calculate the true Compound Annual Growth Rate of your investments to see how fast your money is actually growing over time.

How Does the CAGR Calculator Work?

Our CAGR Calculator helps investors measure the performance of their mutual funds, stocks, or overall portfolio. Because financial markets fluctuate wildly every year, CAGR provides a smoothed "average" yearly return rate, making it the most accurate way to compare different investments.

How to Use

  1. Initial Value: Enter the amount of money you originally invested.
  2. Final Value: Enter the current or final value of that investment.
  3. Time Period: The exact total number of years you held the investment.
  4. Calculate: The calculator outputs your true annualized compounding rate.

The CAGR Formula Explained

This tool uses the standard compound formula:

CAGR = [(FV / PV) ^ (1 / t)] - 1
  • FV: Final Value (ending balance)
  • PV: Present Value (starting amount)
  • t: Time period in years
  • Note: Multiply by 100 for the percentage %

Why is CAGR Important?

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Peer ComparisonStandardized metric allowing you to compare a stock vs a bond or real estate fairly.
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Smooths VolatilityIgnores intermediate drops and spikes, focusing purely on start and end dates.
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Performance TrackingEasily check if your portfolio manager is beating market benchmarks like the S&P 500.

Frequently Asked Questions