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CAGR Calculator

Finance

Calculate the Compound Annual Growth Rate (CAGR) of an investment over time.

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USD
$0.01$100,000,000.00
USD
$0.01$100,000,000.00
0.1100

CAGR

20.11

The compound annual growth rate of your investment.

Total Return

150.00

The overall percentage gain over the entire period.

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Odeh Ahwal

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Odeh Ahwal
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Frequently Asked Questions

What is CAGR?

CAGR (Compound Annual Growth Rate) is the smoothed annual rate of return that an investment would have needed to grow from its beginning value to its ending value over a given period, assuming consistent compounding.

How is CAGR different from average annual return?

CAGR accounts for compounding and smooths out volatility, providing a single consistent growth rate. A simple average of annual returns can be misleading because it ignores the compounding effect and can overstate actual growth.

Why use CAGR to evaluate investments?

CAGR makes it easy to compare the performance of different investments over different time periods on an apples-to-apples basis, since it normalizes growth to a single annual rate.

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