CAGR Calculator
Calculate Compound Annual Growth Rate (CAGR) to measure the mean annual growth rate of an investment over a specified period.
Understanding CAGR
CAGR Formula:
CAGR = (Final Value / Initial Value)^(1/years) - 1
Why Use CAGR:
• Smooths out volatility over time
• Enables comparison between investments
• Shows "average" annual growth rate
• Assumes reinvestment of returns
Typical CAGR Benchmarks:
• S&P 500 (1928-2023): ~10%
• Bonds: 4-6%
• Real estate: 3-5%
• High-growth stocks: 15-25%+
Note: CAGR doesn't reflect investment risk or volatility.
CAGR = (Final Value / Initial Value)^(1/years) - 1
Why Use CAGR:
• Smooths out volatility over time
• Enables comparison between investments
• Shows "average" annual growth rate
• Assumes reinvestment of returns
Typical CAGR Benchmarks:
• S&P 500 (1928-2023): ~10%
• Bonds: 4-6%
• Real estate: 3-5%
• High-growth stocks: 15-25%+
Note: CAGR doesn't reflect investment risk or volatility.
? Frequently Asked Questions
How accurate is this
This calculator uses standard formulas and provides accurate results for typical use cases. For professional or critical applications, always verify results with certified professionals or official sources.
Is this calculator free to use?
Yes, this CAGR Calculator is completely free to use with no registration required. You can use it as many times as needed without any limitations.
Can I use this on mobile devices?
Absolutely! This calculator is fully responsive and works perfectly on smartphones, tablets, and desktop computers.
How do I interpret the results?
The results are displayed clearly with appropriate units. Refer to the About This Calculator section for detailed information.