How to Calculate Compound Annual Growth Rate for Your Investments

What CAGR tells you

CAGR measures the mean annual growth rate of an investment over a specified period longer than one year. It represents the rate at which an investment would have grown if it had grown at a steady rate, compounding annually. This makes it easier to compare different investments.

When to use CAGR

Comparing mutual fund performance, evaluating stock returns, measuring business growth, projecting investment values, and analyzing portfolio performance all benefit from CAGR. It smooths out volatility and gives you a single percentage that summarizes annualized growth.

How to use the CAGR Calculator

Open the CAGR Calculator tool. Enter the beginning value, the ending value, and the number of years. The calculator instantly shows your compound annual growth rate. You can also use it in reverse — enter a target CAGR to see what ending value you need to achieve.

Complement with other tools

Use the CAGR Calculator alongside the SIP Calculator and EMI Calculator for a well-rounded view of your financial planning. All calculations are client-side, keeping your financial data private.