CAGR Calculator
Calculate annualized growth rate, future value, and visualize your investment journey in seconds.
Inputs
Results
What this calculator includes
- CAGR (annualized growth rate) with validation and clear explanations.
- Total gain and absolute return calculation.
- Projection chart using your CAGR + optional monthly contribution.
- PDF export is always in English to avoid Arabic font issues.
CAGR Calculator – Measure Annual Growth Rate Accurately
Understanding growth over time is essential for evaluating investments, business performance, and financial planning. The CAGR Calculator helps users calculate the average annual growth rate of an investment or value over a specific period, assuming steady growth.
Unlike simple percentage change, CAGR provides a smoother and more realistic view of long-term performance, making it widely used by investors, analysts, and business owners.
What Is CAGR?
CAGR stands for Compound Annual Growth Rate. It represents the mean annual growth rate of an investment over a specified time period, assuming profits are reinvested each year.
It answers a simple question:
“If this value had grown at a steady rate every year, what would that rate be?”
This makes CAGR particularly useful when growth fluctuates from year to year.
Why Use a CAGR Calculator?
Manually computing CAGR involves formulas, exponents, and careful handling of time periods. A CAGR Calculator online removes complexity and delivers instant results.
Using this tool helps you:
Compare multiple investments fairly
Measure long-term business growth
Analyse portfolio performance
Understand historical returns clearly
It’s far more reliable than looking at short-term percentage gains.
How to Calculate CAGR
Many users search for how to calculate CAGR because the formula can look intimidating:
CAGR = ( Ending Value Beginning Value )1 / Years − 1
While this formula is accurate, calculating it manually can lead to errors—especially for longer periods. This calculator applies the formula automatically and displays results clearly as a percentage
CAGR Calculation in Excel vs Online Tools
A common approach is CAGR calculation Excel, using formulas like:
=(Ending Value / Beginning Value)^(1/Years) – 1
While Excel is powerful, online tools offer faster results without formula errors or spreadsheet setup. An online calculator is especially useful for quick comparisons or mobile use.
Compound Annual Growth Rate Calculator Use Cases
A compound annual growth rate calculator is useful in many real-world scenarios:
Stock and mutual fund performance analysis
Real estate value growth
Business revenue tracking
Population or user growth analysis
Market size projections
It helps normalise growth across different time spans.
CAGR vs Simple Growth Rate
A simple growth rate looks only at the start and end values. CAGR, on the other hand, spreads growth evenly across the entire period.
This makes CAGR a more realistic growth rate calculator when evaluating:
Long-term investments
Multi-year business performance
Irregular yearly returns
CAGR smooths volatility and presents a clearer trend.
Limitations of CAGR
While useful, CAGR has limitations:
It assumes constant growth
It does not reflect volatility
It ignores interim cash flows
That’s why CAGR should be used in conjunction with other metrics, such as annual returns, standard deviation, or net profit.
Additional Tools You May Like
To understand CAGR in financial analysis, visit:
👉 ICICI CAGR Calculator
Who Should Use a CAGR Calculator?
This tool is ideal for:
Investors and traders
Business owners and founders
Financial analysts
Students learning finance
Anyone comparing growth over time
It provides clarity without requiring technical expertise.
Final Thoughts
A CAGR Calculator is one of the most reliable tools for understanding long-term growth trends. While it doesn’t replace detailed financial analysis, it provides a clear and standardised way to compare performance across time periods.
Used responsibly, CAGR helps investors and decision-makers gain confidence and clarity when evaluating growth potential.
FAQs – CAGR Calculator
Is CAGR the same as annual return?
No. CAGR assumes steady growth, while annual returns may fluctuate.
Can CAGR be negative?
Yes. CAGR will give a negative value, which will signify a depreciation of value.
How do I calculate SIP returns using compound interest?
Yes. You can calculate growth for any number of years.
Is this CAGR calculator free to use?
Yes, it is totally free and does not need any registration.
Can I use it for business growth analysis?
Absolutely. It is widely used for revenue and performance evaluation.