Use this free CAGR calculator to find the Compound Annual Growth Rate of any investment, including stocks, mutual funds, crypto, or business revenue.
What is CAGR?
CAGR (Compound Annual Growth Rate) measures the average annual growth of an investment over a period of time. It smooths out volatility and shows the consistent yearly growth rate.
Formula for CAGR
CAGR = (Ending Value / Starting Value)1 / Years – 1
Frequently Asked Questions
1. Why is CAGR important?
CAGR shows the real growth rate of an investment, ignoring market ups and downs.
2. Is CAGR better than absolute returns?
Yes, CAGR gives a clearer yearly growth picture, while absolute return does not account for time.
3. What is a good CAGR?
In long-term equity investing, a CAGR of 10–15% is generally considered good.