Free CAGR Calculator 2026 to calculate Compound Annual Growth Rate for your investments. Analyze investment performance with year-by-year growth charts and instant results.
Calculate Compound Annual Growth Rate for your investments and track growth over time
Starting investment or initial amount
Current or ending investment value
Investment duration in years (can include decimals)
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Your CAGR calculation results will appear here
The Compound Annual Growth Rate (CAGR) provides a smoothed annual rate of growth over a specified period of time.
CAGR = ((Final Value / Initial Value)^(1 / Number of Years)) - 1
Additional Calculations:
Total Growth % = ((Final Value - Initial Value) / Initial Value) × 100
Absolute Return = Final Value - Initial Value
Year N Value = Initial Value × (1 + CAGR)^N
Example:
Initial Value: $10,000
Final Value: $16,105
Years: 5
CAGR = (($16,105 / $10,000)^(1 / 5)) - 1 = 10%
CAGR is the mean annual growth rate of an investment over a specified period longer than one year. It represents the constant rate of return needed for an investment to grow from its beginning value to its ending value, assuming profits were reinvested at the end of each year. Unlike simple returns, CAGR smooths out volatility to show the true growth rate.
CAGR is calculated using the formula: CAGR = ((Final Value / Initial Value)^(1 / Number of Years)) - 1. For example, if you invested $10,000 and it grew to $15,000 in 3 years, the CAGR would be ((15,000 / 10,000)^(1 / 3)) - 1 = 14.47%. This means your investment grew at an average annual rate of 14.47%.
CAGR is more accurate than simple average return because it accounts for the effect of compounding and smooths out volatility. Simple average can be misleading with fluctuating returns. For example, if an investment drops 50% one year and gains 50% the next, the average return is 0%, but the actual return is negative. CAGR provides a more realistic picture of growth.
Yes, CAGR can be negative if the final value is less than the initial value, indicating a loss over the investment period. A negative CAGR shows the average annual rate of decline. For example, if $10,000 declines to $8,000 over 2 years, the CAGR would be approximately -10.56% per year.
A 'good' CAGR varies by asset class and market conditions. Stock market historical CAGR averages 10-12% annually. Real estate averages 8-10%. Bonds average 5-6%. Consider inflation (typically 2-3%) when evaluating CAGR. Any CAGR above inflation represents real growth. Higher CAGR usually indicates higher risk and volatility.
Calculate CAGR for each investment over the same time period, then compare. The investment with the higher CAGR performed better. However, also consider risk, volatility, and your investment goals. A higher CAGR doesn't always mean a better investment if it comes with significantly higher risk or doesn't align with your financial objectives.
Yes, you can use decimals in the years field. For example, 6 months = 0.5 years, 3 months = 0.25 years, 18 months = 1.5 years. However, CAGR is most meaningful for periods longer than one year, as it's designed to smooth out short-term volatility and show long-term growth trends.
Your calculation history is automatically saved in your browser's local storage for up to 3 days. The calculator stores your last 5 calculations and automatically removes entries older than 3 days to keep your history relevant. You can manually clear your history anytime using the 'Clear History' button. Your data stays private and never leaves your device.