CAGR Calculator

WordToolsHub.com

Free Online Tools for Your Daily Needs

CAGR Calculator

Calculate the Compound Annual Growth Rate (CAGR) of your investments. CAGR represents the mean annual growth rate of an investment over a specified time period.

What is CAGR?

Compound Annual Growth Rate (CAGR) is the mean annual growth rate of an investment over a specified period of time longer than one year. It represents one of the most accurate ways to calculate and determine returns for anything that can rise or fall in value over time.

How to Calculate CAGR?

The formula for CAGR is:

CAGR = (Final Value / Initial Value)1 / Time Period – 1

Why is CAGR Important?

CAGR helps investors understand the mean annual growth rate of their investments, smoothing out volatility and providing a clearer picture of performance over time. It’s especially useful for comparing different investment options.

Example Calculation

If you invested ₹10,000 and after 5 years it grew to ₹16,105, your CAGR would be:

CAGR = (16,105 / 10,000)1/5 – 1 = 0.10 or 10%

Scroll to Top