CAGR Calculator
Calculate the Compound Annual Growth Rate of your investments over any period. Compare annual returns.
Calculate Compounded Annual Growth Rate of your portfolio
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Annualized Trajectory Schedule
| Year | Projected Capital Value | Annual Interest Added | Total Growth (%) |
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How to use this tool
What is CAGR?
Compound Annual Growth Rate (CAGR) represents the smoothed annual rate at which an asset grows if it grew at a steady rate over the period, compounding annually. It is the best metric for comparing returns of different investments.
How to Compute Your CAGR
Input your investment values to find your geometric growth rate.
Initial Value
Enter the starting value of your investment (the buy price or capital injected).
Final Value
Enter the ending value of your investment (current portfolio valuation or sale price).
Duration
Specify the total time period in years. Fractional years (e.g. 2.5 years) are fully supported.
The CAGR Formula
CAGR is computed by taking the nth root of the total return ratio:
CAGR = (Vfinal / Vinitial)1 / t - 1
Frequently Asked Questions
Common questions about CAGR calculations.
Why use CAGR instead of simple interest?
Simple interest ignores compounding. CAGR accounts for the compounding effect year-over-year, giving a much more accurate rate of annual performance for investments like stocks, mutual funds, or real estate.
Does CAGR represent actual annual returns?
No. CAGR is a representative “smoothed” rate. In reality, your investments might gain 30% in year one, lose 10% in year two, and gain 5% in year three. CAGR tells you what steady rate would produce the exact same final balance.
Privacy & Safety Policy
All tools run completely in your browser via client-side JavaScript. We do not upload your files, interest parameters, or JSON payloads to any server. Your data remains yours.