CAGR Calculator

Calculate Compound Annual Growth Rate (CAGR) of your investment.

Investment Details

CAGR 0%

What is CAGR?

CAGR (Compound Annual Growth Rate) represents the mean annual growth rate of an investment over a period of time, assuming the profits are reinvested.

CAGR Formula

CAGR = (Final Value / Initial Value)1 / Years − 1

Why Use CAGR?

  • Compare different investments
  • Understand long-term performance
  • Eliminate short-term volatility

Frequently Asked Questions

Is higher CAGR always better?

Higher CAGR indicates better growth, but risk and volatility should also be considered.

Can CAGR be negative?

Yes. If the final value is lower than the initial investment, CAGR will be negative.

Is CAGR suitable for SIP investments?

CAGR is best for lump-sum investments. XIRR is more suitable for SIPs.