CAGR Calculator: Measure True Investment Performance
Our CAGR Calculator reveals the smoothed annual growth rate of any investment.
What is CAGR?
Compound Annual Growth Rate = [(Ending / Beginning)^(1/n) - 1] × 100
Why Use CAGR?
- Normalizes volatile returns
- Compare different investments
- Applies to stocks, funds, business
Example: $10K → $25K in 5 years
- CAGR: 20.11%
- Total Return: 150%
- Multiple: 2.5x
Formulas
CAGR = (FV / PV)^(1/t) - 1
Rule of 72: Years to double ≈ 72 / CAGR
Pro Tips
- Use with ROI
- Adjust for inflation
- Compare to benchmarks
Limitations
- Assumes constant growth
- Ignores volatility
- Not cash flow weighted
Conclusion
Measure performance accurately. Use our CAGR Calculator now.