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CAGR Calculator

📈 CAGR Calculator

Know your investment's Compounded Annual Growth Rate with initial amount, final amount and number of years.

Currency Initial Investment Final Value Time Period (Years)

CAGR Guide

CAGR Calculator Guide

CAGR (Compound Annual Growth Rate) is the rate of return that would be required for an investment to grow from its beginning balance to its ending balance, assuming profits were reinvested at the end of each year.

Why CAGR Matters:

Provides a standardized way to compare different investments
Smooths out volatility to show average annual performance
Helps in long-term financial planning and goal setting
Essential metric for evaluating mutual funds and portfolios
Accounts for compounding effect of reinvested returns

CAGR Benchmarks:

< 8% Below Average
Consider alternatives

8-15% Good
Market average range

15%+ Excellent
Outstanding performance

Formula:

CAGR = (Final Value / Initial Value)^1/n - 1
Where n = number of years

Remember: CAGR assumes steady growth and doesn’t account for volatility. It’s an average annual return, not what you’ll earn each year.

About CAGR Calculator

The CAGR (Compound Annual Growth Rate) Calculator is a smart and simple tool designed to help investors determine the average annual growth rate of an investment over a specified period of time. It takes into account the initial investment, final value, and duration to compute a steady growth rate assuming profits are reinvested.

This tool is especially useful for comparing the performance of different investments such as mutual funds, stocks, fixed deposits, and real estate. Whether you're planning long-term financial goals or evaluating your portfolio, the CAGR calculator gives a clearer picture of how well your investment is performing over time.

Developed with simplicity in mind, this calculator supports over 50 international currencies, allows partial years (e.g., 2.5 years), and provides results in both number and tabular form. It is fully responsive and optimized for mobile, tablet, and desktop users.

CAGR FAQ

Frequently Asked Questions (FAQ)

What is CAGR and why is it important for investment analysis?

CAGR (Compound Annual Growth Rate) is the average annual return of an investment over a specific time period. It helps investors understand the consistent growth rate by smoothing out market fluctuations. It’s widely used in analyzing stock returns, mutual fund performance, and long-term financial growth.

How to calculate CAGR manually?

To calculate CAGR manually, use the formula:

CAGR = (Final Value / Initial Value)^(1/n) - 1

Where:
- Final Value = amount after investment period
- Initial Value = amount invested
- n = number of years

It’s a useful alternative to Excel CAGR functions and financial calculator apps.

Is CAGR better than average returns for mutual funds?

Yes, CAGR provides a more accurate picture than average returns because it includes compounding. Mutual fund CAGR reveals actual growth by accounting for reinvested profits, making it more reliable than arithmetic averages when comparing SIP returns or lump sum investments.

Can I use this CAGR calculator for stocks and SIPs?

Absolutely! This tool works for stocks, SIPs, real estate, crypto, NPS, gold, or any investment where you know the initial and final value over a period. Just enter your values and get your average annual return instantly.

What is a good CAGR for long-term investment?

A CAGR between 8–15% is considered good for mutual funds and equity investments. Anything above 15% CAGR indicates excellent performance. It’s ideal for long-term wealth creation and financial planning.

Does CAGR include inflation and taxes?

No, CAGR is a pure growth metric and doesn’t consider inflation or tax deductions. For inflation-adjusted returns or real return calculators, you need to subtract inflation rate from CAGR to find true purchasing power gain.

Which keywords can I search to learn more?

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