21,000 to 210,000 in 5 Years
Growing from 21,000 to 210,000 over 5 years is a CAGR of 58.49%. Total growth: 900.0%. Free CAGR calculator.
CAGR = (210,000/21,000)^(1/5) - 1 = 58.49%. Total growth = 900.0%.
How This Was Calculated
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.
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
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