CAGR Calculator
Calculate the Compound Annual Growth Rate of your investment.
Frequently Asked Questions
What is CAGR?
CAGR (Compound Annual Growth Rate) is the geometric mean growth rate of an investment over a specified period. It smooths out volatility to show the steady growth rate needed to go from initial to final value.
CAGR vs Simple Average?
Simple average ignores compounding. CAGR accounts for the compounding effect, giving a more accurate picture of long-term investment growth.
How to interpret CAGR?
A higher CAGR means faster growth. S&P 500 historical CAGR is ~10%. Compare your investment CAGR against benchmarks to evaluate performance.
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