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Online CAGR Calculator – Compound Annual Growth Rate Calculator

Looking for an easy way to calculate your investment growth? Use our online CAGR calculator to find the compound annual growth rate of your investment. It's a reliable metric that helps you evaluate long-term returns by factoring in compounding.

Our CAGR calculation calculator helps you measure how much your investment has grown each year, on average. Forget manual calculations—get instant, accurate results with just a few inputs.

What is a CAGR Calculation Calculator?

A compound annual growth rate calculator computes the annualized return of an investment over a certain period. Unlike simple returns, CAGR includes the impact of compounding, giving a clearer picture of performance.

  • ✔️ What is my average annual growth rate?
  • ✔️ How has my portfolio performed over time?
  • ✔️ How does this investment compare with others?

How the Online CAGR Calculator Works

The formula used by our online CAGR calculator is:

CAGR = (EV / BV)(1/t) - 1

Where:

  • EV – Ending Value
  • BV – Beginning Value
  • t – Number of years

How to Use This CAGR Annual Growth Rate Calculator

To use our CAGR annual growth rate calculator, just follow these simple steps:

  1. 1️⃣ Enter your Initial Investment (BV)
  2. 2️⃣ Enter your Final Investment Value (EV)
  3. 3️⃣ Input the Duration (Years)
  4. 4️⃣ Click on ‘Calculate’

Example of CAGR Calculation

Imagine you invested ₹1,00,000 and it grew to ₹1,80,000 over 5 years. Here's the math:

CAGR = (1,80,000 / 1,00,000)(1/5) - 1 = 12.57%

Why Use Our Online CAGR Calculator?

  • ✅ Accurate annual growth measurement
  • ✅ Compare various investment options
  • ✅ Forecast returns and set goals
  • ✅ Make smarter investment decisions

Limitations of CAGR

CAGR has some limitations:

  • 🔹 It assumes steady growth
  • 🔹 It does not show volatility or risk
  • 🔹 Past CAGR does not guarantee future results

Final Thoughts

Use this compound annual growth rate calculator to assess and compare your investments with ease. Whether it’s stocks, mutual funds, or real estate, this tool provides quick insights for better financial decisions.

FAQs

CAGR (Compound Annual Growth Rate) is a measure of the annual growth rate of an investment over a specified period, assuming the profits are reinvested at the end of each year. It provides a smoothed annual rate of return.
The CAGR Calculator calculates the annual growth rate of an investment using the formula:
CAGR = (Ending Value / Beginning Value)^(1 / Number of Years) - 1
You need to input the beginning value, ending value, and the number of years to calculate the CAGR.
You need to provide:
  • Beginning Value: The initial value of the investment.
  • Ending Value: The final value of the investment.
  • Number of Years: The duration of the investment in years.
CAGR is important because it provides a single growth rate that smooths out the volatility of returns over time. It helps investors compare the performance of different investments over the same period.
Yes, CAGR can be used for any type of investment, including stocks, mutual funds, real estate, and business projects. It is a versatile tool for measuring growth over time.
CAGR does not account for volatility or the risk of an investment. It assumes a smooth growth rate, which may not reflect the actual ups and downs of the investment.
Absolute return measures the total return on an investment without considering the time period. CAGR, on the other hand, provides an annualized growth rate, making it easier to compare investments over different time periods.
Yes, CAGR can be negative if the ending value of the investment is less than the beginning value. This indicates a loss over the investment period.

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