CAGR Calculator

Calculate Compound Annual Growth Rate (CAGR) to measure investment performance and compare returns across different time periods

✓ CAGR Analysis ✓ Growth Projection ✓ Performance Comparison

Calculate CAGR

Investment Details

Starting investment amount

Current or ending value

Investment duration

Additional Analysis (Optional)

Total additional investments made

Compare against market benchmark

CAGR Formula

CAGR = (FV/PV)^(1/n) - 1
Where:
FV = Final Value
PV = Present Value
n = Number of years

Quick Examples

Stock Investment
$10k → $25k over 5 years
Real Estate
$200k → $350k over 10 years
Mutual Fund
$5k → $12k over 7 years

CAGR Benchmarks

S&P 500 (Historical): ~10%
Real Estate: ~6-8%
Bonds: ~4-6%
Inflation (US): ~2-3%
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Understanding CAGR

Compound Annual Growth Rate (CAGR) represents the mean annual growth rate of an investment over a specified time period longer than one year.

  • Smooths Volatility: Provides a single growth rate despite fluctuations
  • Easy Comparison: Compare different investments on equal terms
  • Future Projections: Estimate future values based on historical growth
  • Performance Measure: Evaluate investment success objectively

CAGR Applications

Investment Analysis

Compare performance across different asset classes and time periods.

Business Growth

Measure revenue, profit, or customer growth rates over time.

Financial Planning

Project future wealth and retirement planning scenarios.