CAGR Calculator

What CAGR Tells You (and What It Does Not)

CAGR is the gold standard for measuring investment growth. It takes the beginning and ending values of an investment over a time period and calculates the smooth, annualized rate of growth. This is incredibly useful for comparing investments of different durations or asset classes. A mutual fund that turned $10,000 into $25,000 over 8 years has a CAGR of 12.1% — now you can compare that directly to a stock pick that doubled in 3 years (CAGR: 26%). However, CAGR paints over volatility. Two investments can have identical CAGRs but wildly different risk profiles. Always pair it with risk metrics for a complete picture.

Year-by-Year Growth Table

The growth table shows how your investment would grow each year at the calculated CAGR. While real-world performance zigzags, this table illustrates the power of compounding — notice how the absolute dollar gains get larger each year even though the percentage stays constant. This is the essence of compound growth and why time in the market matters more than timing the market for most investors.

Using CAGR for Business and Investing

Beyond investments, CAGR is used to measure revenue growth, customer acquisition rates, market expansion, and more. If your startup's revenue went from $100K to $1.5M in 4 years, your revenue CAGR is 96.8%. That single number communicates growth trajectory more clearly than listing each year's revenue. Use this calculator whenever you need to express growth as a clean annual percentage — for pitch decks, financial reports, or personal goal tracking.

Related Tools

Compare total returns with the ROI Calculator. Project future growth using the Compound Interest Calculator. Planning regular investments? Try the SIP Calculator.