CAGR Calculator
Calculate compound annual growth rate with our free CAGR calculator. This CAGR calculator shows investment growth rate and compares to simple returns. Use this CAGR calculator to evaluate investment performance over time. Our CAGR calculator helps you understand true annualized returns for better investment decisions.
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CAGR Calculator Inputs
Initial investment or starting portfolio value
Final portfolio value or current value
Investment time period in years
Compound Annual Growth Rate
+0.00%
Annualized return over 5 years
Total Return
+0.00%
Absolute Gain
$0
Simple Annual
+0.00%
Contributions
$0
Investment Summary
Growth Projection Over Time
Understanding Your CAGR Calculator Results
A CAGR calculator measures compound annual growth rate, the rate at which an investment grows annually over time. This CAGR calculator accounts for compounding to show true annualized returns. Use this CAGR calculator to compare different investments fairly regardless of time period. Our CAGR calculator helps you evaluate investment performance more accurately than simple returns.
Key CAGR concepts:
- CAGR vs Simple Return: CAGR accounts for compounding while simple return divides total gain by years
- Time Period Impact: Longer time periods smooth out volatility and provide more reliable CAGR measurements
- Compounding Effect: CAGR assumes gains are reinvested, reflecting true portfolio growth
- Investment Comparison: CAGR enables fair comparison between investments with different time periods
- Limitations: CAGR doesn't show volatility or timing of cash flows - only beginning and ending values
Using this CAGR calculator: Enter your beginning and ending values plus time period. The CAGR calculator shows your annualized growth rate and compares to simple returns. This CAGR calculator can include regular contributions for more accurate real-world scenarios. Remember that this CAGR calculator assumes consistent compounding - actual returns may vary based on market volatility and timing of investments.
Disclaimer: This calculator is for educational and illustrative purposes only. Results are estimates and may not reflect actual outcomes. Investing Point does not guarantee the accuracy of these calculations and is not responsible for any decisions made based on this tool.
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