CAGR (Compound Annual Growth Rate) is the rate at which an investment grows annually over a specified period, assuming the investment compounds over time. It provides a smooth annualized rate of return, making it easier to compare different investments.

To calculate CAGR, you need three key values: the initial investment value, the final investment value, and the number of years over which the investment has grown.The formula to calculate CAGR is:

CAGR = (Final Value / Initial Value) ^ (1 / Number of years) – 1

Enter these values in our calculator to instantly get the CAGR percentage.

A CAGR calculator simplifies the process of determining the annual growth rate of an investment. It’s a reliable way to evaluate the performance of your investments over time, eliminating fluctuations and providing a clear, long-term view.

A “good” CAGR depends on your investment goals and the industry in question. Generally, a higher CAGR indicates better returns, but it’s essential to compare it with market standards and inflation rates to evaluate whether your investment has outperformed the market.

No, CAGR represents the consistent annual growth rate over a period, assuming the investment compounds. An annual return shows the performance of an investment over one year and may fluctuate from year to year, whereas CAGR smooths out these variations.

Yes, the CAGR calculator works regardless of currency. Whether your investment is in INR, USD, or any other currency, as long as the initial and final values are in the same currency, the CAGR result will be accurate.

No, the CAGR calculator does not take inflation into account. It calculates the growth of your investment over time but does not adjust for inflation or other external factors that may impact the real value of your returns.

Yes! The CAGR formula is not limited to investments. You can use it to calculate the growth rate of anything over time—such as population growth, sales growth, or even website traffic growth.