CAGR Calculator
Find the true annualised growth rate of any investment.
CAGR (Compound Annual Growth Rate) is the single most useful number for comparing investments, because it expresses growth as a smooth, annualised percentage. This calculator finds the CAGR between any starting and ending value over a period, so you can compare funds, stocks or a whole portfolio fairly.
How this calculator works
Enter the initial value, the final value, and how many years the investment was held. The calculator computes the rate at which the initial value would have to grow, compounded annually, to reach the final value — plus the absolute and total percentage gain.
The formula
CAGR = (Final Value / Initial Value)^(1 / n) − 1- Final Value
- = Ending value of the investment
- Initial Value
- = Starting value
- n
- = Number of years
CAGR smooths out year-to-year volatility, so it is ideal for comparing investments with different holding periods.
Worked example
CAGR ≈ 20.1% per year, even though the total return over the whole period was 150%.
Key benefits
- Compares investments with different tenures fairly
- Removes the distortion of a single great or poor year
- Simple, universal metric used across finance
- Great for judging fund and portfolio performance
Smart tips
- Use CAGR to compare funds, not point-to-point returns
- Remember CAGR hides volatility — check drawdowns too
- For SIPs use XIRR instead, since cash flows are staggered
- Longer periods give more meaningful CAGR figures