CAGR Calculator
Calculate Compound Annual Growth Rate of any investment. See annualized returns and total growth instantly.
How to Use the CAGR Calculator
- Enter the starting value of your investment (or revenue, followers, any metric).
- Enter the final value.
- Enter the time period in years.
- Click Calculate CAGR to see the smoothed annual growth rate, total growth, and multiple.
Formula & Method
CAGR = (Final Value / Starting Value)^(1 / Years) - 1
CAGR smooths out year-to-year volatility into a single annual rate, assuming steady compounding. An investment doubling in 4 years has a CAGR of about 18.9% — even if individual years varied wildly.
Examples
| Start | End | Years | CAGR | Total Growth |
|---|---|---|---|---|
| 100,000 | 200,000 | 5 | 14.87% | 100% |
| 50,000 | 150,000 | 10 | 11.61% | 200% |
| 1,000,000 | 2,500,000 | 7 | 13.99% | 150% |
| 25,000 | 50,000 | 3 | 25.99% | 100% |
Frequently Asked Questions
What is CAGR?
Compound Annual Growth Rate is the smoothed annual return that takes an investment from its starting value to its ending value, assuming profits were reinvested each year.
Why use CAGR instead of average return?
Simple averages mislead. An investment that gains 50% then loses 50% has an average return of 0% but actually lost 25% overall. CAGR captures the true compounded result.
What is a good CAGR for investments?
Equity index funds have historically delivered 10-12% CAGR long-term. Beating 15% consistently is excellent. FDs give 6-7%. Compare any investment CAGR against these benchmarks.
What are the limitations of CAGR?
CAGR ignores volatility and intermediate cash flows. An investment that crashed then recovered shows the same CAGR as steady growth. For irregular investments (SIPs), use XIRR instead.
How do I calculate CAGR in years with decimals?
Enter decimals directly: 2.5 years, 7.75 years. For months, divide by 12 — 18 months = 1.5 years.
🔥 Popular CAGR Calculator Results
Quick links to common calculations:
People Also Ask
What is the CAGR if my money doubled in 5 years?
Doubling in 5 years is a CAGR of 14.87%: (2)^(1/5) - 1. The Rule of 72 gives a quick estimate: 72 / 5 = 14.4%.
Is 20% CAGR good?
Yes — 20% CAGR doubles money every 3.8 years and beats most professional fund managers over long periods. Sustaining it for decades is extremely rare.
What is the difference between CAGR and absolute return?
Absolute return is the total percentage gained (end/start - 1). CAGR annualizes it: 100% absolute return over 5 years equals 14.87% CAGR, not 20%.