Compound annual growth rate calculator

Initial value of the investment?

$

Final value of the investment?

$

Years to grow?

 



Compound annual growth rate of the investment:

0.00 %

About CAGR

  • Compound annual growth rate (CAGR) is the best way to quantify the performance of an investment
  • CAGR takes into account the additional growth generated by reinvesting dividends, interest, and capital gains
  • Often people think it's enough to take the average of their yearly returns, but this generally produces an inflated number called the average annual growth rate (AAGR)  
    • For example, someone who has returns of 10%, 80% and 25% over three years has a CAGR of 35.27% and an AAGR of 38.33%
  • The equation for calculating CAGR can be found here
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