When comparing investments or tracking your portfolio growth, Compound Annual Growth Rate (CAGR) tells you the steady annual growth rate your investment would have had if it grew at the same rate every year.
🔍 How to Use the Calculator
Using the CAGR calculator is simple:
Enter the Beginning Value
This is the amount you originally invested.Enter the Ending Value
This is the final value of your investment after it grew.Enter the Number of Years
This is how long the investment was held.View the Result
The calculator will instantly show your CAGR as a percentage — the steady rate your investment grew each year.
Example:
If you started with $5,000 and ended with $7,500 after 3 years, your CAGR will show as 14.47%.
CAGR Formula
CAGR = (Ending Value / Beginning Value) ^ (1 / Number of Years) - 1
Why CAGR Matters
CAGR smooths out the volatility of investment returns. Even if your portfolio grew unevenly year to year, CAGR shows what constant growth rate would produce the same result. It’s great for:
- Comparing different investments
- Planning long-term financial goals
- Understanding performance over time
Try it above with your own numbers!
💡 Example
If you invested $10,000 and ended up with $14,641 after 5 years, your CAGR would be:
CAGR = (14641 / 10000) ^ (1 / 5) - 1 = 8%