CAGR Calculator – Compound Annual Growth Rate

(Compound Annual Growth Rate Calculator)

Compound Annual Growth Rate (CAGR) represents the yearly growth rate of an investment over a defined period, assuming the profits are reinvested each year. Unlike absolute returns, CAGR factors in the time value of money, providing a more accurate picture of an investment’s annual performance.

What is a CAGR Calculator?

The Compound Annual Growth Rate (CAGR) calculator is a useful tool that helps determine the CAGR of your investment over a period of time. To calculate the CAGR, you need to input the initial investment amount, the expected final value, and the number of years.

CAGR Formula
CAGR Formula

Where:

  • n = Number of years
  • Initial Value = Starting investment
  • Final Value = Ending value of investment

Example:- The initial value of your investment is Rs 15,000, and the final value is Rs 28,000 in three years (N= 4 years).

CAGR is calculated as: CAGR = {(28,000/15,000)^(1/4) – 1}*100;

CAGR = 16.89%. per year

How to use toolandgame CAGR calculator?

  • Enter your initial investment amount.
  • Enter the expected value of the investment after a certain period of time.
  • Enter the period of time ie.number of years 
  • Click the button “Calculate CAGR”

FAQs

Do I need to log in to use the CAGR tool?

You do not need to log in to access or use the CAGR tool.

CAGR Formula:

CAGR = {[(EV/BV) ^ (1/N)]-1}*100
EV= Ending Value (Final Investment Value)
BV= Beginning Value (Initial Investment Value)
N= No of Years

What is the difference between XIRR and CAGR?

CAGR measures the fixed annual growth rate of an investment over a period, assuming one-time investment and compounding annually.
XIRR accounts for multiple cash flows at different times (like SIPs or irregular investments) and gives a more accurate annualized return based on actual investment dates.

Can you use CAGR for months?

Yes, absolutely. CMGR measures the average monthly growth rate, just like CAGR measures the average annual growth rate. The formula remains the same, with the only difference being that the number of years is replaced by the number of months.

Can the CAGR Be Negative?

Yes. A negative CAGR would indicate losses over time rather than gains.

Is the CAGR calculator free for use? 

Yes, toolandgame online CAGR calculator is free for use. There is no restriction on how many instances you use it.