Compound Annual Growth Rate (CAGR) Calculator
Calculate the annualized growth rate of your investments, compare multiple asset scenarios, and project year-by-year compounding returns in real-time.
Investment Parameters
Initial Value and Duration must be greater than zero.
CAGR = (Final / Initial)^(1 / Years) - 1
= (25,000 / 10,000)^(1 / 5) - 1 = (2.50)^0.20 - 1 = 0.2011 (20.11%)
š Compounding Growth Curve
End of Year Projectionšļø Year-by-Year Growth Schedule
| Year | Beginning | Annual Gain | Ending Balance | Total Return |
|---|
Compare Multiple Investment Scenarios
Enter different initial investments, outcomes, and timeframes to compare annualized returns side by side.
š” What is CAGR and Why Does It Matter?
Annualized Compounding
Unlike simple absolute return, CAGR smooths out annual volatility to show the steady rate at which an investment would have grown if it compounded evenly.
Comparing Apples to Apples
CAGR allows you to fairly compare a 3-year mutual fund return against a 7-year real estate investment or a 10-year index fund.
Formula Transparency
CAGR = (EV / BV)^(1/n) - 1 where EV is Ending Value, BV is Beginning Value, and n is number of years.